What is the main reason of this inflation???

Question

What is the main reason of this inflation???

Answer 1

the interplay of oil greed and speculation as an integral part of the recent counrtrywide, bear sterns debacle in mortgage banking. a banking crash for making sub prime (bad loans) and let the taxpayers bail them out. reckless banking practices with millions of foreclosers and huge bailout for bear stersn and others. but it is safe for the crooked bankers because the financial community always turns to government backing - taxes and debt. that was a huge hit. it is complicated.

Answer 2

decline in the value of the dollar..

Answer 3

there are many reasons, however, i think that the main reason has been due to the impressive economic growth we've been experiencing (mainly in response to minerals trade with China and India). Other reasons could be due to rising petrol prices which in turn increases the general prices of many goods and services--> inflation!

Answer 4

the reasons are twofold, one is off course  the fuel supply which has not increased at  a rate to meet demand, this has caused an increase in fuel prices, again fuel is a basic feed to all sectors, result, inflation............................

the second? rapid globalization and poor implication of preventive measures, which as implemented world price at most places gradually, without implementing world-class technology what i mean is it is the natural reaction of speculative forces to drive products out of local markets this is countermovement thesis when it's a concious effort of any nation eg depriciation, beggar thy neighbour polices etc. it's more serious.............................

see, an increase in rate of interest may also lead to crowding out but a decrease may lead to recession! controlling inflation is very risky, exact statistica needed to decide it, but most of us feel the increase in last year added fuel to fire, demotivating investor conidence and thus increase in supply;

w ee dont need to simply react to us policies of wea;th management, we need to create our own , besides our interests in k.p.o. ventures and more expensie issues rather thasn simler technology is a concern for fast development of h.r.r to thaAT level may not be possible, above all as a concluding remark,  i would say domestic fuel rise could hav been tackled more responsibly bu g.o.i. by irradicating  high rates of black marketing......  govt. needs to start public support ratjer than int suppliers, poor development of local markets, unwilling ness to imply c.n.g. etc. lead to poor performance on international front and high susseptibility

besides a country like india should never globalize agriculture, oharmacy etc. despite criticisms it may be argued that gains r sporadic and much less w.r.t. risks and costs,, in nations with poor agro- productivity inflation fluctuations occur due to lack of confodence towards govt policy a poor distribution framework....

to conclude, it might be said the giant of liberalisation once let loose has taken a demonish shape and care is not taken to tame supply sides trends, it'll continue......................

Answer 5

The national debt.  Thanks to the gigantic national debt, our dollar has been devalued.  Its loss value and therefore, things cost more [inflation].

Answer 6

United States is secretly making the AMERO... collaboration with Mexico to make a north american currency. so ... when the value of the dollar is gone, they'll just go: hey, we now use the Amero.

Answer 7

One can't attribute inflation to only one driver, there are many reason that are driving inflation these days.

One must think what is shifting the aggregate demand curve to the left creating higher equilibriums with the aggregate supply curve and thus increasing prices.

the main reason in my opinion are:

an increased in the money supply

an increased in government spending (particularly since 2001)

a decreased in taxes (bush's tax cuts)

changes in equilibrium caused by the current oil supply shock which is driving the cost of production.

low interest rates.

and the list goes on.