Inflation - Theories

In this section we look at some of the causes of inflation and consider how it may be linked to other economic variables. The theories considered are:

• T1 Costs of inflation - who pays?
• T2 Demand-pull inflation - demanding inflation
• T3 Cost-push inflation - what pushes inflation up?
• T4 Phillips Curve - is unemployment inflated?
• T5 Inflation and money - the role of the money supply