If sterling holds steady, inflation ought to fall. Therefore, inflation is caused by a combination of four factors: the supply of money goes up, the supply of other goods goes down, demand for money goes down and demand for other goods goes up. Inflation: Selected full-text books and articles Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework By Jordi Galí Princeton University Press, 2008
The Federal Reserve is struggling to hit its annual inflation target for the sixth straight year, suggesting that, once again, it may be too optimistic about the health of the economy. Different Types of Inflation . Retail sales, producer prices, wages and exchange rates. Evergreen article listing that provides information relating to inflation, deflation, hyperinflation and gold. These four factors are thus linked to the basics of supply and demand.