Monetary Policy

Posted on AllSides August 12th, 2020
From The Center
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* Inflation is a general rise in prices for goods and services due to a decline in a currency’s value or purchasing power.[103] [104] [105]

* Inflation occurs when a government creates and puts more into circulation than its economy needs. This causes the purchasing power of money to shrink and prices to increase.[106] [107]

* Market forces can also have inflationary effects:

“Cost–push” inflation occurs when a supply shortage or unexpected cost increase pushes up general prices. For example, a spike in gas prices increases the cost of transportation,...

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