what causes inflation?
Monetary policy: Central banks can influence inflation through their monetary policies. If they print too much money, it can lead to an increase in inflation.
Supply shocks: Events like natural disasters, pandemics, or geopolitical tensions can disrupt supply chains and lead to shortages of goods, which can drive up prices.
Expectations: If people expect inflation to rise, they may demand higher wages and prices, which can become a self-fulfilling prophecy.
It's important to note that these factors can interact with each other and their impact on inflation can vary depending on the specific economic conditions.
It is important to note that the US president has very little influence on inflation.
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