Unit 3.3 (Macroeconomic objectives: Inflation)

This subtopic explores the causes and consequences of inflation and the role of monetary policy in maintaining price stability within an economy. It examines how central banks use interest rates to influence aggregate demand and control inflation. The following case study analyzes Brazil’s use of contractionary monetary policy between 2021 and 2024 as a real-world example of how increasing interest rates can reduce inflation and restore macroeconomic stability.

Find below the powerpoint on topic 3.3 - inflation, created by Carolina Mathias and Catarina Cavalcante (you may click on the arrow and open it on another tab)

Real-World Example: Contractionary Monetary Policy to Reduce Inflation (Brazil)

Other subtopic case study revision materials: