LEO DIAS – PÂNICO – 01/06/22

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Theories on Inflation

One theory of inflation is called monetarism. This theory says that inflation is always present and that it is a monetary problem.

What Causes Inflation?

Although experts can’t agree completely on what the exact causes of inflation really are, most of them agree that inflation is due to either quality and/or quantity. The quality theory of inflation says that a person who earns money will be able to use that money to buy the good he wants.