The 10 most important changes that lead to widespread price increases in the global economy
For the 12 months that ended in September, the annual inflation rate in the United States was 3.7%. There are a variety of factors that can lead to widespread price increases in the global economy. Some of these factors, such as increases in the money supply and the cost of production, are economic in nature. Other factors, such as government policies and geopolitical events, are non-economic in nature. It is important to understand the different factors that can lead to inflation in order to develop policies to mitigate its negative effects. Here are the 10 most important changes that lead to widespread price increases in the global economy: 1. Increase in the money supply When the money supply increases, the value of each individual unit of money decreases. This is because there are more units of money chasing the same amount of goods and services. This can lead to inflation, which...