What causes inflation? Glossary terms from: Causes of Inflation
Too much money chasing too few goods is common cause for
inflation. Additionally, a rise in production costs can also
lead to a rise in inflation. International lending and federal
taxes can also be causes of inflation, while war is also a
leading cause of inflation as well. A written order to a
financial institution directing the financial institution to pay
a stated amount of money, as instructed, from the customer's
account. Inflation caused by rising costs of production. The
quantity of a good or service that buyers are willing and able
to buy at all possible prices during a period of time. Inflation
caused by increasing demand for output or "too much money
chasing too few goods." Tangible objects that satisfy economic
wants. A rise in the general or average price level of all the
goods and services produced in an economy. Can be caused by
pressure from the demand side of the market (demand-pull
inflation) or pressure from the supply side of