1. Def
   1. increase in general level of prices
2. forms
   1. Demand Pull
      1. total demand in economy exceeds total supply
      2. increase in general level of prices
   2. Cost Push
      1. Increase in costs of production are passed to consumer
         1. increased wages
         2. increased indirect taxes
         3. Increase cost of imports
3. Reduce Demand Pull
   1. Increase Indirect Taxes
      1. smaller take-home pay
      2. less purchasing power
   2. credit controls
      1. consumers can't obtain loans
      2. less demand for expensive durable goods
      3. Increasing interest rates
         1. less loans will be taken out
      4. Reducing Govt Expenditure
         1. biggest spender
         2. reducing will have big effect on demand in economy
4. Reduce Cost Push
   1. Types
      1. Increased indirect taxes
         1. decrease tax prices
            1. unrealistic
            2. govt needs taxes
      2. Increased wages
         1. link wage increases to increases in productivity
      3. National Wage Agreements
         1. between
            1. Irish Congress of Trade Unions
            2. Irish Business and Employers Confederation
         2. Wage Freezes
         3. Govt controls costs of
            1. labour
5. Problems caused
   1. reduced purchasing power
      1. lower standard of living
   2. unemployment
   3. demands for wage increases
   4. if negative interest rate
      1. savings will decrease
      2. less investment funds
   5. if interest rates are less then rate of inflation
      1. borrowing will increase
      2. further demand pull inflation
   6. Balance of trade
      1. exports become more expensive
      2. imports become cheaper
   7. fixed incomes suffer most
   8. property and other fixed assets
      1. money moves away from wealth-creating projects