The bulk of this tutorial will concern itself with this line of neoclassical economic theory. Other strands of so-called “heterodox” economics have sprung up to challenge the mainstream model, and other social sciences such as psychology and sociology have added valuable insight to the mechanical models of pure economics. Sometimes rejected as fringe elements, mainstream economics is today increasingly tolerant of some these ideas and even go so far as try to incorporate alternative theory into its own. Some of these will be examined briefly at the end of this tutorial.
The Fed has been trying to create the illusion that inflation is an issue. The guys from the hard money camp also maintain that inflation is an issue and to a point they are right. Their definition of inflation is an increase in the money supply. The Fed, on the other hand, defines inflation as an increase in prices. The real definition of inflation is an increase in the money supply; rising prices are just the symptom of the disease. This article from summarises this concept quite succulently