What are the Reasons?
Causes of inflation:
- Demand-pull (too much demand)
- Cost-push (rising production costs)
Causes of deflation:
- Demand loss (more saving, less spending)
- Production increase (production gets cheaper)
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Economics and politics student from Germany. Interested in a broad field of topics and trying to easily break down topics from his studies to everyone.
In this Mini-Series, we will talk about the key concepts of macroeconomics. I will shortly explain each concept in a respective post. This is part 3 of 5, covering Inflation.
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