Inflation Cause and Effect Essay by Jay Writtings LLC

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:
Introduction
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
Hyperinflation
How We Try to Manage Money: Inflation and Economic Policy Decisions
Conclusions