Blossary – Causes of Inflation

Home > Blossary: Causes of Inflation

Causes of Inflation

Inflation is the devastating condition when prices just keep going up, eating away at your standard of living.

Category: Business

3 Terms

Created by: rufaro9102

Number of Blossarys: 41

My Terms

Collected Terms

Terms

Oldest on top

Translate Terms

Add a term

English (EN)

Compare Language

Demand-Pull inflation

Demand-pull inflation is the most common. It's is when demand for a good or service increases so much that it outstrips supply. If sellers maintain the price, they will sell out.

Cost-Push Inflation

This isn't as common as demand-pull inflation, because it only occurs when there is a shortage of supply combined with enough demand to allow the producer to raise prices. Wage inflation can ...

Expansion of Money Supply

Over expansion is also another cause; the money supply is not just cash, but also credit, loans and mortgages. When loans are cheap, then there will be too much money chasing too few goods, creating ...