Why are inflation and deflation important

Inflation and deflation

There are two terms that make people and financial experts uncomfortable when it comes to the value of our money: inflation and deflation. A look back at history shows that if the general price level is clearly out of joint, it can weigh heavily on an economy and result in a considerable loss of prosperity with far-reaching economic, social and political consequences. But what do these two terms mean? What are their triggers and what are their effects? Why are stable prices important to face inflation and deflation?

The worksheet "Prices Out of Control: What Are Inflation and Deflation?" which is available for free download on the school service portal youth and finance deals with these and other questions. Among other things, it explains what the terms inflation and deflation mean, what forms there are and what their characteristics are. The students also get to know various central causes and triggers that can lead to inflation or deflation. Building on this, they deal with the importance of stable prices and the role of the European Central Bank (ECB) in order to achieve this economic policy goal. A discussion of the causes, the course and the consequences of hyperinflation in Germany, which reached its peak in 1923, rounds off the worksheet.

It can be used in the subjects of economics, politics, history, social and community studies as well as interdisciplinary and interdisciplinary teaching at upper secondary level.

The school service portal for youth and finance

The worksheet is part of the information and teaching materials for general financial education and career orientation that the school service portal Youth and Finance of the Volksbanken and Raiffeisenbanken makes available. This is primarily aimed at teachers of all school types and levels, parents and interested consumers. Free downloadable teaching materials on the subjects of economics and finance are available for primary school and secondary level I and II. The local and regional educational initiatives of the cooperative banks with details of local contact persons are shown on an interactive map of Germany under “Educational offers nationwide”. An online glossary explains numerous important terms from the world of finance, and parents can find recommendations under a separate section of the portal on how their children's early financial education can look like in the family.

New YouTube channel with videos on financial education

Youth and Finance has had its own YouTube channel since 2020. The explanatory videos and short spots stored there are primarily used as an introduction to a financial topic. These films can be used in addition to the corresponding worksheets on the portal, but also independently of it.