Mains Paper II · 1 Indian Economy · 1.8 Inflation and price indices

1.8.3 Effects of inflation and related terms: deflation, stagflation, core inflation, base effect and the Phillips curve

Unexpected inflation moves wealth from lenders and fixed-income earners to borrowers, and the Phillips curve describes the short-run trade-off between inflation and unemployment.

  • APPSC Group 2 · Mains Paper II
  • Advanced level
  • 5 min read
  • Full course

Key terms

  • effects of inflation
  • debtors
  • bracket creep
  • base effect
  • Phillips curve
  • stagflation
  • deflation
  • Cost Inflation Index
  • menu cost
  • shoe-leather cost

What this note covers

  1. Core factsFoundation
  2. ExplainedStandard
  3. DeeperAdvanced
  4. Mains writingMains writing
  5. Common trapsFoundation
  6. Quick revisionFoundation

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