What Really Causes Inflation? A Complicated Economic Phenomenon Explained

Inflation has been a doomsday scenario for modern economies throughout the last century. The US inflation rate accelerated to 8.5% in March of 2022, the sharpest increase since 1981, but inflation isn't just a US thing; other emerging markets are also facing inflation. Prices for everything from petrol to groceries have been rising sharply. So, what causes inflation, how its work. These Complicated economic theories abound, but we'll simplify them in this video.

What Really Causes Inflation? A Complicated Economic Phenomenon Explained
Chapters:
0:00 Inflation 1967 - 2021
2:05 Inflation in Free Market Economy
02:25 Spike in Gasoline Prices — isn't the Root Cause of Inflation
3:42 What Really Causes Inflation?

[Cite, References & More ]

#Inflation #Hyperinflation #Economics

Music used in this video:
Grand Dark Waltz Trio Vivace by Kevin MacLeod
March of the Spoons by Kevin MacLeod
Bleeping Demo by Kevin MacLeod

[econYT]

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[realSamarthT]

That's what I wanted. Keep it up.
Btw will you make a vdo on Gold standard or Gold linked currencies, why countries dropped gold standard

[DanH-uf]

If a government overspends compared to its tax revenue, inflation will occur. 2021 in the US is a perfect example.

[edwardmclaughlin]

The definition of inflation given here and in so many other discussions, is a big part of the problem. Inflation is not 'a persistent rise in prices over time; the price rises are subsequent to and a result of the creation of new units of currency.
The use to the term 'inflation' in this loose way allows governments to get away with 'money-printing', the eventual and desired effect of which is to take wealth from those who think they are safely storing the result of the work they did in the past.

[carloselfinanciero]

Too simplistic imo, inflation is a multi-causal phenomenon and is not only based on the money supply.

[mrwoodandmrtin]

This is a good basic start. But annoyingly misleading. You need to factor in immigration, so you can keep the cost of wages down. Also, who the players are. I.e., Govts, Reserve banks, trading banks etc.

[Azazin]

You should know that Milton Friedman was wrong with nearly everything. A Central Bank cannot control the money supply (with money targeting). Modern CB's adjust the interest rate to balance inflation (based on sophisticated models). Monetarism failed and your video failed to understand newer debates about inflation. You could start by reading about the endogenous theory of money.

[WarrenPeaceOG]

1:05 Well, there's the problem in one graphic!😹
5:30 Supply of key energy inputs dropped because the West created artificial scarcity with sanctions. Inflation is caused by real world conditions, not monetary phenomenon. West has been creating new money in the economy for decades with decades of zero inflation

[admincxs]

What causes inflation? Everyone’s imagination.

[sanjaisai]

Very good video, made to mislead public...