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What Causes Inflation? - The Relationship between Central Bank Policies and Inflation

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  • Andras Balogh

    (Magyar Nemzeti Bank)

Abstract

This article uses examples from economic history and crises to examine the factors that contribute to the development of periods of high inflation, with a particular focus on the role of different fields of economic policy. With reference to the economic theories underlying economic policy considerations, the paper also briefly introduces an emerging approach, the Modern Monetary Theory, and discusses its messages on inflation.

Suggested Citation

  • Andras Balogh, 2021. "What Causes Inflation? - The Relationship between Central Bank Policies and Inflation," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 20(4), pages 144-156..
    • Handle: RePEc:mnb:finrev:v:20:y:2021:i:4:p:144-156.
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    File URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-20-4-fa1-balogh.pdf
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    References listed on IDEAS

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    1. Hess Chung & Jean‐Philippe Laforte & David Reifschneider & John C. Williams, 2012. "Have We Underestimated the Likelihood and Severity of Zero Lower Bound Events?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 44(s1), pages 47-82, February.
    2. Orsolya Csortos & Zoltan Szalai, 2015. "Difficulties in them management of the global financial crisis: academic and economic policy lessons," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 14(3), pages 5-38.
    3. Weale, Martin & Wieladek, Tomasz, 2016. "What are the macroeconomic effects of asset purchases?," Journal of Monetary Economics, Elsevier, vol. 79(C), pages 81-93.
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    Cited by:

    1. Laszlo Szepesvary, 2022. "Effect of the Yield Level, the Inflation Environment and the Pandemic on the Lapse Rates of Life Insurances," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 21(3), pages 44-72.

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