During the 1990s, the United Kingdom experienced low levels of inflation while Turkey experienced high levels of inflation. What best explains the difference?

Question

Quizplus · Accepted Answer

The rate at which a country prints money is a crucial determinant of inflation. If a country is producing too much money, it will create too much demand, causing too much money to chase too few goods, leading to inflation. Turkey's high rate of inflation can likely be attributed to their printing of more money than the demand for money required. In contrast, the United Kingdom printed money at a slower rate, which contributed to their lower levels of inflation.

During the 1990s, the United Kingdom Experienced Low Levels of Inflation