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    Principal Causes of Inflation

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    What are the causes of inflation? Discuss how they contribute to inflation of prices.

    © BrainMass Inc. brainmass.com October 9, 2019, 5:47 pm ad1c9bdddf

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    The principal causes of inflation are:

    - Excessive demand - 'too much money chasing too few goods'. If demand is growing faster than the level of supply, then prices will increase. The costs of inflation include:

    - Uncertainty - if inflation keeps varying, then firms may ...

    Solution Summary

    Lists 4 principal causes of inflation in 181 words of explanation.