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“As inflation is a monetary phenomena and the government, either directly or indirectly, has control over the money supply, then it follows that all inflationary episodes are caused by governments”. Elaborate and discuss upon this statement.


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“As inflation is a monetary phenomena and the government, either directly or indirectly, has control over the money supply, then it follows that all inflationary episodes are caused by governments”. Elaborate and discuss upon this statement.

... EPP Macroeconomics Essay "As inflation is a monetary phenomena and the government, either directly or indirectly, has control over the money supply, then it follows that all inflationary episodes are caused by governments". Elaborate and discuss upon this statement. Inflation is a general rise in prices across the economy. This is distinct from a rise in the price of a particular good or service. Individual prices rise and fall all the time in a market economy, reflecting consumer choices and preferences, and changing costs. The most commonly used measure of inflation in the UK is the Retail Prices Index (RPI). The RPI is an index of the prices of products and services that consumers buy. It is made up of the prices of hundreds of goods and services - from basic items like bread to new products, such as mobile phones. Prices are sampled up and down the country every month;

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