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What causes inflation?

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Inflation results from an increase in the amount of circulating currency beyond the needs of trade; an oversupply of currency is created, and, in accordance with the law of supply and demand, the value of money decreases.

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Similar questions: What is the source of inflation? Why does inflation happen? What happens when more money is circulated than is needed. What term is used to describe an oversupply of currency that results in the reduced value of money? [ Hide these questions ]

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