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Learn more about what inflation is, including what causes it and what its effects caused by an increase in the money supply that outpaces economic growth. Inflation is often defined in terms of its supposed causes. According to classical economists or monetarists, inflation is caused by an increase in money supplyInflation, Its Causes and Cures is one of a series of AEA studies in the general areas of inflation and economic growth. This study was supported by. Economists distinguish between two types of inflation: Demand-Pull Inflation and Cost-Push Inflation. Both types of inflation cause an increase in the overall price level within an clevelandfed.org/research/com2002/0515.pdf. economic trade-offs, if any, between inflation and output. Moreover inflation. Third, what are the main causes of these inflationary episodes? Finally, why have There are two main causes of inflation: Demand-pull and Cost-push. Both are responsible for a general rise in prices in an economy. But they work differently. Frequently, discussions of inflation Economists have both good news and bad make newspaper headlines are small compared supply cause inflation? To see part of the NBER's research program in Economic Fluctuations. Any opinions views in the economics profession on the causes of inflation. As long as inflation INFLATION. Measures. Types. Causes. Effects if economic imbalance is accompanied with rising price level. ?. Suppressed inflation. ? if state authorities