|
Abstract
|
Article Information:
The Real Causes of Inflation
Ernest Hamsag
Corresponding Author: Ernest Hamsag
Submitted: October 12, 2014
Accepted: January 27, 2015
Published: May 20, 2015 |
Abstract:
|
Having defined what inflation is, this study proposes some hypothesizes to eliminate external and psychological factors; it also examines a closed economy. It shows that the deep cause of inflation is the out of balance relation between consumption expenditure and saving. If consumption expenditure increases more than saving, the result is an inflation of the real economy. If saving increase to the prejudice of consumption expenditure, the financial markets are undergoing inflation. The main causes of the unbalance of the relation consumption expenditure/savings are: 1) the unbalanced allotment of the benefits of the productivity increase between capital revenues and employee compensation, 2) Either the introduction of forced saving (for example: introduction of retirement founds), or the introduction of forced consumption expenditure (example: introduction of retirement by immediate repartition of the contributions). Leverage can increase the unbalance. The first induces an inflation of the financial markets, the second of the real economy. Natural inflation of the real economy is defined depending on the relative increase of the productivity of different agents.
Key words: Inflation of the financial markets, natural inflation, productivity increase distribution, , , ,
|
|
Abstract
|
PDF
|
HTML |
|
Cite this Reference:
Ernest Hamsag, . The Real Causes of Inflation. Current Research Journal of Economic Theory, (1): 1-10.
|
|
|
|
 |
ISSN (Online): 2042-485X
ISSN (Print): 2042-4841 |
 |
| Information |
|
|
|
|
| Sales & Services |
|
|
|
|
