Now that scholars understand more about currency imbalance and artificially suppressed currency, Sal discusses the motivations of the different actors. He briefly touches on the difficulty of unwinding a cycle like this once it has...

Understand the difference between inflation, deflation, and disinflation from viewing this brief video.

More on inflation and capacity utilization

In this tutorial, learn the basics of deflation. [3:11]

Explains what happens during a deflationary spiral. [3:51]

Is the stimulus large enough to offset the demand shock caused by the contraction in credit? Will it lead to inflation? [13:21]

A video exploring why there tends to be moderate inflation during good economies. Understand how employment, wages, demand, profit, price, and supply all play a role in inflation. [2:55]

A discussion of inflation and deflation

Economics of a simple business leading up to a discussion on inflation and deflation. Touching on income statements. [11:13]

Unexpected inflation or deflation takes wealth away from one group and gives it to another group. This video talks about the winners and losers from inflation and deflation. [6:13]

This video demonstrates how different points of the business cycle correspond to the production possibilities curve. The discussion includes unemployment, inflation, expansions, recessions, and economic growth. [6:08]

A video [11:49] explaining capacity utilization and how it affects inflation and deflation.

A video [12:31] explaining capacity utilization and how it affects inflation and deflation.

A video [13:21] examining President Obama's stimulus plan and how it might affect inflation.

This video explains the economics of a simple business leading up to a discussion on inflation/deflation. It also touches on income statements. [11:13]

Explore the basics of deflation, including the definition of deflation, how the CPI changes when there is deflation, and why economists tend to be concerned when deflation occurs. [3:10]

Sal Khan explains how you can have deflation even if the money supply increases. [4:03]

One of the biggest worries associated with deflation is a deflationary spiral, in which low unemployment and a decreasing price level lead to lower unemployment and an even lower price level. [3:50]

Explains how a supply shock can cause prices to rise and the economy to stagnate.

Explains how you can have deflation even if the money supply increases. [4:04]

Looks at a simplified scenario to discover how the velocity of money can drive price increases. [3:30]