Large differences in inflation rates among countries are almost always the result of large differences in

Question

Quizplus · Accepted Answer

Inflation rates are largely determined by the growth rates of nominal money supplies. When a country experiences a rapid growth in its nominal money supply, this can result in an increase in the overall level of prices, which leads to inflation. Therefore, differences in inflation rates between countries are mainly due to differences in the growth rates of their nominal money supplies.

Large Differences in Inflation Rates Among Countries Are Almost Always