Tag: InflationCauses

Inflation is an economic phenomenon that can erode purchasing power, influence monetary policy, and impact overall economic stability. Understanding the causes of inflation is crucial for both policymakers and individuals. Today's economy, influenced by various internal and external factors, sees inflation driven by multiple causes, from expansive fiscal policies to supply chain disruptions. This article examines the principal causes of inflation in the modern economy. Demand-Pull Inflation Demand-pull inflation occurs when the demand for goods and services surpasses the economy's ability to provide them, leading to a general increase in prices....