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Monetary policy

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Europe

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Monetary Policy - Inflation - Causes

Introduction

Economists rarely agree about anything, and inflation is no exception! Over the years a wide range of causes have been suggested. The fact that inflation can be caused by different things at different times only complicates the picture further. In this section you can explore all the different causes and find out more about the different theories surrounding it.

  • Explanation- a good starting point for finding out about the different possible causes of inflation. A simple overall guide.
  • Theories - more detail on all the theories about the causes of inflation. Demand-pull inflation, cost-push inflation, the Quantity Theory of Money and so on.
  • Worksheets - some worksheets to help you test your understanding of the causes of inflation.
  • Further work - some further detail on the causes of inflation and some suggestions for additional study.