An example of inflation and wealth with trade
Hi everyone. I have something different from usual... again!
A number of people outside my classes have asked me to help them understand inflation and wealth. After presenting the usual economic arguments on the topic, some of them were left unsatisfied. It is indeed difficult to understand these advanced topics without having seen basic macroeconomic models and definitions.
It occurred to me that some Economists used to present new economic concepts with the help of an imaginary island. In this setting, we can study the impact of specific economic events on our subject of interest. That’s a good way to introduce the ever-lasting assumption of ceteris paribus we love so much in Economics.
You can see my presentation by clicking on the image below. I hope you learn something and enjoy doing so! For those that took International Economics before, it should bring back warm memories... although this is a super-simplified version of it.
Take care everyone!