The Complex Dynamics of Inflation: A Descriptive Review
DOI:
https://doi.org/10.64229/r92ny987Keywords:
Inflation, Types of Inflation, Demand-Pull Inflation, Causes of Inflation, Monetary Policy, Fiscal PolicyAbstract
Inflation is hard to ignore as it silently erodes the economic foundation of every country, regardless of its size, strength, or developmental level. Rising inflation has become a pressing concerning problem worldwide, endangering macroeconomic stability and sustainable growth. Persistent inflation reflects the direction of an economy and can disrupt demand-supply balances, as well as worsen labor market consequences. Hence, it is crucial to have a thorough understanding of inflation, including its diverse forms, underlying causes, socioeconomic impacts, and ramifications, to adopt proper strategies to reduce it. Previously, many review articles and studies have been published focusing on specific aspects of inflation, but this review synthesizes evidence across dimensions to offer an integrated perspective useful for both researchers and policymakers. Secondary data is gathered from different virtual databases and platforms (Google Scholar, Scopus, and ResearchGate) using targeted keyword combinations; inclusion and exclusion criteria were applied to select peer-reviewed English-language studies within the defined timeframe. This descriptive review covers inflation, including its types, principal causes, macroeconomic and social effects, methods of measurement, and effective strategies used to control inflation. It also highlights and compares major theoretical perspectives (Keynesian, Monetarist, and the Phillips-curve framework), explaining how these frameworks inform empirical interpretation and policy choices. By offering a holistic perspective, this review provides a thorough understanding of inflation and supports the development of up-to-date, evidence-based policies for economic stability.
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