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What Causes Inflation?

If you follow the economic news you will probably have heard the word inflation, used many times; it has also become part of our everyday vocabulary. Despite the fact that most of us will be familiar with the word, we may be a bit unclear about exactly what this is or what causes it to happen. This is a topic that is much debated and of great concern to economists, politicians, business owners, investors, and others. It is something that may be of concern to everyone as inflation can impact us all in one way or another.

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What is Inflation and Why do Economists Want to Avoid It?

Inflation is an economics term that most of us hear a lot. There will often be news stories about how the government is working to keep inflation low. While this word is commonly used in the media there still be a bit confused as to what it actually means for us. We might also wonder why economists and governments are so eager to avoid inflation. This is an important idea in economics, but one that can cause confusion for the rest of us.

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