Inflation Cause and Effect Essay by Jay Writtings LLC

Looks at the causes and effects of inflation, costs and government controls.
# 117402 | 1,380 words | 10 sources | MLA | 2009 | US

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This paper points out that inflation is not a rise in price of individual goods and services but rather an increase in the average price of all goods and services. The conditions of cost push and demand pull and other theories are explored as major reasons for price increases. The paper also relates fiscal and monetary policies that are used to control the economy.

Table of Contents:
What Happened is Inflation
The Causes of Inflation
Two Major Reasons for Price Increases
Cost Push: An Increase in Costs May Lead to an Increase in Prices
Demand Pull: Too Much Demand for Goods and Services in the Economy May Force Prices Upwards
The Costs of Inflation
Costs of Inflation on a Personal Level
The Costs of Inflation on Business
How We Try to Manage Money: Inflation and Economic Policy Decisions

From the Paper:

"There have been interesting cases where inflation has risen to levels called "hyper-inflation." In Germany during the 1920s, for example, prices increased by 3.25 million times per month. Reportedly, people ordering a restaurant meal would pay for it before they received it, because the price would have risen by the time they finished eating it.
"In Yugoslavia, during the communist breakdown and the Balkan wars of the 1990s, inflation reached five quadrillion percent between October 1993 and January 1995."

Sample of Sources Used:

  • GCSE Economics revision notes, Peter Davies of Mill Hill School, Ripley
  • Almanac of Policy Issues, Gail Makinent, Congressional Research Service May 20, 2003
  • Bank of Biz/ed
  • Caution: Inflation is higher than you think by W Joseph Stroupe, Asia Times Online, 4Jun 27, 2006

Cite this Cause and Effect Essay:

APA Format

Inflation (2009, November 30) Retrieved December 08, 2023, from

MLA Format

"Inflation" 30 November 2009. Web. 08 December. 2023. <>