Chapter 30

I would give this chapter a 1.5 out of 3. Most of the material intrinsically makes sense to me although it is a little less interesting than normal. The basic idea of the chapter was to explain inflation; what it affects and how it happens. The general idea was that inflation is the result of monetary policy and that it didn't have an affect on real variables in the long run although it did on nominal variables. The velocity of money represents how fast money changes hands in the economy. Despite inflation economic velocity is relatively stable. Hyperinflation is when inflation is over 50% and results from the government printing to much money. As they need to pay for various goods and services countries may succumb to hyperinflation. This is called the inflation tax. Inflation doesn't necessarily have to be bad.