Economics

What Are The Causes Of Inflation?

Demand-pull inflation, cost-push inflation, and built-in inflation are the three basic sources of inflation. Demand-pull inflation occurs when there are insufficient items or services to meet demand, leading prices to rise. On the other side, cost-push inflation happens when the cost of producing goods and services rises, causing businesses to raise their prices. Finally, workers […]

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How Increase In Money Supply Leads To Inflation?

Inflation can be divided into two types, according to Keynesian economists: demand-pull and cost-push. Desire-pull inflation occurs when customers demand things at a higher rate than production, maybe due to a bigger money supply. Cost-push inflation occurs when input prices for items rise faster than consumer tastes change, sometimes as a result of a higher

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What Happens To Bank Stocks When Inflation Rises?

When inflation is high, value stocks perform better, and when inflation is low, growth stocks perform better. Do bank stocks do well when inflation is high? Due to supply-side interruptions and bottlenecks caused by the epidemic, labor shortages, and exceptional demand for goods and services following the lifting of lockdowns, prices have been moving higher.

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