regular inflation

What Is The Source Of Persistent Inflation?

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What Is The Source Of Persistent Inflation? The ultimate source of inflation is persistent excessive growth in aggregate demand resulting from persistent excessive growth in the supply of money. What are the main causes of inflation? Demand-pull inflation. Demand-pull inflation happens when the demand for certain goods and services is greater than the economy’s ability

Does Quantitative Easing Increase Money Supply?

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Does Quantitative Easing Increase Money Supply? Quantitative easing increases the money supply by purchasing assets with newly-created bank reserves in order to provide banks with more liquidity. Does QE add to money supply? Very little of the money created through QE boosted the real (non-financial) economy. The Bank of England estimates that the first £375