Inflation Caused by Monetary Policy, Leading to Economic Instability
The article explores why inflation happens and how monetary policy plays a role in causing inflation. It suggests that inflation is mainly caused by too much money in the economy. In the past ten years, economists have agreed that inflation is a result of monetary factors. The main reason for inflation in the US is the government's policy of trying to keep unemployment low. To prevent inflation, the government needs to have a credible and strict monetary policy.