Different inflation theories. Different time frames
There are three main theories about the causes of inflation:
- Money supply theory
- Keynesian theory of cost-push and demand-pull inflation
- Population/demographic theory
Reviewing all these theories leads to an interesting conclusion. Maybe all the theories are right to some extent. It is just the time frame of their influence that distinguishes them.
Malthus’s theory about population growth and competition resource probably have an impact over the very long-term inflation rate. Medium-term rates are influenced by money supply. Latent inflation created by printing money must be rectified at some point, but this might be delayed for decades. Short-term it seems to be factors expounded by Keynes that best explain the gyrations of price indices on a daily basis, e.g. commodity price rises and government-regulated price increases.