What causes inflation?

Question

What drives price of goods and services higher?

Answer 1

The devaluation of the dollar. If there are more in circulation than than there value will bare. There are way too many things that effect the value of any monetary note. The exchange rate, Which countries money is favored in the world for business trans actions, wages,shortages of raw materials,services or manufacturing.

Answer 2

Inflation has many causes, but they all operate to raise the demand for goods and services beyond the capacity of the ecomomy to satisfy that demand. Often inflation follows a war, when the government has spent vast sums on military equipment and has not raised taxes enough to pay for it. Heavy government spending in peacetime may also lead to inflation.

Answer 3

Too much money chasing too few goods is what a nobel prize winning economist once said. Inflation is not inherently bad...it is the unpredictability of the AMOUNT of inflation that stifles business during inflationery times, is what most QUALIFIED economists would tell you. Think liberal, think Big.

Answer 4

The two questions are not necessarily tied together.

Inflation -- 90% caused by government interference.

Prices going up -- high demand, low supply or excessive taxes (e.g. tobacco)

Answer 5

1. Air going in.
2. Good advertising!

Answer 6

Greed. Under the guise of supply and demand.

Answer 7

Supply and Demand and perceived value.

Answer 8

supply and demand

Answer 9

bush and his bankers