History of Inflation in Timeline
Inflation, in economics, denotes a general increase in the prices of goods and services within an economy, leading to a decline in the purchasing power of money. It's commonly quantified by the inflation rate, representing the annualized percentage change in a general price index like the Consumer Price Index (CPI). CPI tracks changes in prices faced by households. The opposite of inflation is deflation, where the general price level decreases.
1922: Publication by Thomas M. Humphrey and Richard Timberlake
In 1922, monetary historians Thomas M. Humphrey and Richard Timberlake published "Gold, the Real Bills Doctrine, and the Fed: Sources of Monetary Disorder 1922–1938".
1936: Keynes' "The General Theory of Employment, Interest and Money"
In 1936, John Maynard Keynes emphasized that wages and prices were sticky in the short run in his main work "The General Theory of Employment, Interest and Money".
1938: Publication by Thomas M. Humphrey and Richard Timberlake
In 1938, monetary historians Thomas M. Humphrey and Richard Timberlake published "Gold, the Real Bills Doctrine, and the Fed: Sources of Monetary Disorder 1922–1938".
1948: High-Inflation Episodes
In 1948, toward the end of the Nationalist Chinese government, there were spectacular high-inflation episodes in individual countries in interwar Europe.
1949: High-Inflation Episodes
In 1949, toward the end of the Nationalist Chinese government, there were spectacular high-inflation episodes in individual countries in interwar Europe.
1958: Publication by Alban William Phillips
In 1958, Alban William Phillips published indirect evidence of a negative relation between inflation and unemployment.
1972: Wage and price controls by Richard Nixon
In 1972, wage and price controls were imposed by Richard Nixon.
1990: Direct inflation targeting in New Zealand
From its first inception in New Zealand in 1990, direct inflation targeting as a monetary policy strategy has spread to become prevalent among developed countries.
1990: New Zealand adopts official inflation target
In 1990, New Zealand adopted an official inflation target as the basis of its monetary policy.
2000: Modern Phillips Curve
Around the year 2000, a modern Phillips curve includes a role for supply shocks and inflation expectations.
January 2007: U.S. Consumer Price Index
In January 2007, the U.S. Consumer Price Index was 202.416.
2007: Cristina Kirchner's Presidency
During the presidency of Cristina Kirchner starting 2007, the government of Argentina was criticised for manipulating economic data.
2007: Inflation Rate
In 2007, the general level of prices for typical U.S. consumers rose by approximately four percent.
January 2008: U.S. Consumer Price Index
In January 2008, the U.S. Consumer Price Index was 211.080.
2010: M3 Money Supply Increase
From 2010, the broadest measure of money supply, M3, increased about 45% through 2015.
2015: Cristina Kirchner's Presidency
In 2015, during the presidency of Cristina Kirchner, the government of Argentina was criticised for manipulating economic data.
2015: M3 Money Supply Increase
Through 2015, the broadest measure of money supply, M3, increased about 45% from 2010.
October 2018: Hyperinflation in Venezuela
In October 2018, Venezuela experienced the world's highest hyperinflation, with an annual inflation rate of 833,997%.
2019: Publication by Thomas M. Humphrey and Richard Timberlake
In 2019, monetary historians Thomas M. Humphrey and Richard Timberlake published "Gold, the Real Bills Doctrine, and the Fed: Sources of Monetary Disorder 1922–1938".
December 2021: Jerome Powell's statement
In December 2021, Fed chairman Jerome Powell said that the once-strong link between the money supply and inflation "ended about 40 years ago," due to financial innovations and deregulation.
2021: Increase in inflation
In 2021, most countries experienced a considerable increase in inflation.
2022: Peak in Inflation
In 2022, most countries experienced a considerable increase in inflation, peaking in 2022.
May 2023: Inflation expectations
As per May 2023, inflation expectations generally seem to remain anchored.
2023: Fixed exchange rate in Denmark
As of 2023, Denmark is the only OECD country which maintains a fixed exchange rate (against the euro).
2023: Inflation Target
As of 2023, the central banks of all G7 member countries can be said to follow an inflation target.
2023: COVID pandemic and inflation surge
During the COVID pandemic and its immediate aftermath, the M2 money supply increased at the fastest rate in decades, leading some to link the growth to the 2021-2023 inflation surge.
