What`s The Cause Of Inflation

#bitcoin #crypto #blockchain Monetary policy is a major cause of the increase in inflation, says Stanford economist John Taylor. Inflation rises when the Federal Reserve sets too low of an interest rate or when the growth of money supply increases too rapidly – as we are seeing now, says Stanford economist John Taylor. Some economists attribute the US inflation surge to product shortages resulting from the global supply-chain problems, largely caused by the COVID-19 pandemic. Another cause cited include strong consumer demand driven by historically robust job and nominal wage growth. There are three main causes of inflation: demand-pull inflation, cost-push inflation, and built-in inflation. Demand-pull inflation refers to situations where there are not enough products or services being produced to keep up with demand, causing their prices to increase.