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Young Eclectic Liberation Leaders (YELL!)
Inflation is unfair tactic that countries can use to sky rocket the prices of things when in a certain situation.
Inflation can also be when the value of money decreases and in some situations it can have no value at all.
This attacks all people becuase what they have worked hard for is worthless. It can cause great economic crisis.
causes of Inflation from wikipedia
There is broad agreement among economists that in the long run, inflation is essentially a monetary phenomenon. However, in the short and medium term inflation may be affected by supply and demand pressures in the economy, and influenced by the relative elasticity of wages, prices and interest rates.
] The question of whether the short-term effects last long enough to be important is the central topic of debate between monetarist and Keynesian schools. In
prices and wages adjust quickly enough to make other factors merely marginal behavior on a general trend-line. In the
view, prices and wages adjust at different rates, and these differences have enough effects on real output to be "long term" in the view of people in an economy.
A great deal of economic literature concerns the question of what causes inflation and what effect it has. There are different schools of thought as to what causes inflation. Most can be divided into two broad areas: quality theories of inflation and quantity theories of inflation. Many theories of inflation combine the two. The quality theory of inflation rests on the expectation of a seller accepting currency to be able to exchange that currency at a later time for goods that are desirable as a buyer. The quantity theory of inflation rests on the equation of the money supply, its velocity, and exchanges.
proposed a quantity theory of inflation for money, and a quality theory of inflation for production.
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