> inflation is either from excess demand or constrained supply Inflation is always about the balance between supply and demand > the reasons for inflation mat

> inflation is either from excess demand or constrained supply Inflation is always about the balance between supply and demand > the reasons for inflation matter when trying to address the problem Less than one might think based on the either or thinking. Even when a change in supply causes inflation, reducing the demand side will bring it back down. The exception being for specific items where demand is not very elastic in the short term, such as fuel or basic food items. But even increasing interest rates (a demand side intervention) may not affect those prices by much, it will affect other prices enough that aggregate demand can stay low.