Summary of ECO 2013 Macroeconomics -- Chapter 9.11: Cost-Push Inflation

00:00:00 - 00:10:00

In this video, economist Dr. Stephanie Kelton discusses cost-push inflation, which is a mechanism by which inflation can occur due to increased costs of goods and services. Kelton discusses the political implications of cost-push inflation and how it ties in with economics.

• 00:00:00 Cost-push inflation occurs when there is a negative supply shock that reduces output and raises prices. This scenario can lead to trade-offs between economic outcomes, such as recession and higher inflation rates.
• 00:05:00 In this video, the author discusses cost-push inflation, which is a scenario in which the government lowers inflation rates in order to get out of a recession. This is done by decreasing aggregate demand, which in turn lowers prices and causes the economy to go back to its original equilibrium.
• 00:10:00 In this video, economist Dr. Stephanie Kelton discusses the cost-push mechanism, which is a mechanism by which inflation can occur due to increased costs of goods and services. Kelton discusses the political implications of cost-push inflation and how it ties in with economics.