Viewing the long run, what are the major causes of inflation?

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Viewing the long run, what are the major causes of inflation?

2007-08-02 11:18:01 · 5 answers · asked by ecoastb_yr273 1 in Social Science ➔ Economics

5 answers

Increase in money supply by the central bank and downward rigidity of wages.

2007-08-02 19:24:51 · answer #1 · answered by NC 7 · 1⤊ 0⤋

low interest rates cause an increase in the money supply which in turn increases inflation.

2007-08-02 18:26:05 · answer #2 · answered by Cherry Darling 6 · 0⤊ 0⤋

a booming economy approaching full employment
an increase in money supply (favourable interest rates/credit availability)
positive future expectations of consumers/investors

2007-08-02 19:57:03 · answer #3 · answered by saz 4 · 0⤊ 0⤋

The costs of oil and the demand for oil.

2007-08-02 19:25:04 · answer #4 · answered by Anonymous · 0⤊ 1⤋

Too much money chasing too few goods.

2007-08-02 18:27:38 · answer #5 · answered by BushaB 1 · 0⤊ 1⤋