Business Help.

[Alex]

I'm just doing some business homework on inflation. We were given a sheet to read and questions to answer, but the sheet is shite, and doesn't explain a thing, so i wondered if any of you lovely lot could enlighten me.

So, can you explain to me:

• Causes of inflation
  
• The role of expectations in determining the effect of inflation
  
• The possible effects of inflation (and deflation) on firms
  

Thanks in advance.

[weallloveleeds]

alex said:

I'm just doing some business homework on inflation. We were given a sheet to read and questions to answer, but the sheet is shite, and doesn't explain a thing, so i wondered if any of you lovely lot could enlighten me.

So, can you explain to me:

• Causes of inflation
  
• The role of expectations in determining the effect of inflation
  
• The possible effects of inflation (and deflation) on firms
  

Thanks in advance.

I've done hyperinflation in history before, but that's not what you're after

en.wikipedia.org/wiki/Inflation

There's got to be something useful to you in there, although you've probably already tried it.

[Alex]

Cheers Steve, i'll have a look. Nowhere i have found so far give the answer to the middle one though

[weallloveleeds]

I don't know enough about it to pretend I do, so I'll leave it with you!

[Alex]

Lol. It's all a bit messy in business, we usually have a laugh, but i think this lesson just passed me by. Ahh well, once he marks it i guess my teacher will know we may have to go back over it.

[Billy]

I thought inflation was due to supply and demand? The more of something there is, the less it will cost to buy, but when something becomes rare, then you can increase the price.

[Katiekins]

Alexis iv done this in Economics and i know im only a first year but do inflation beyond what you do in business. If you want my help jsut ask and imm dig my notes out

[The Lucky C]

Economic policy has always flown over my head. Go Marxism!