inflationsmekanism
Inflationsmekanismen, sometimes written inflationsmekanism, describes the set of processes by which a general rise in price levels occurs in an economy. It encompasses interactions among money supply and credit, aggregate demand, production costs, price-setting behavior, and inflation expectations.
The main channels are demand-pull, cost-push, and built-in inflation. Demand-pull arises when aggregate demand exceeds the
The monetary transmission channel is central: money supply growth, interest rates, and credit conditions influence demand
Measurement and variation: inflation is typically measured by indices such as the consumer price index (CPI)
Policy relevance: understanding the inflationsmekanismen helps central banks set credible inflation targets, communicate effectively, and apply