Inflation is primarily caused by excessive monetary emission
Empirical evidence from multiple economic studies supports the position that monetary expansion and credit growth play a significant causal role in driving inflation.
The provided literature includes empirical studies (such as papers 0 and 7) demonstrating that money supply growth and credit expansion have a direct causal relationship with inflation. None of the papers refute the classical monetary view; rather, some explore complementary factors like exchange rates or structural inertia alongside monetary drivers.
Balli PE, Cimen SK. Does Credit Expansion Trigger Inflation? An Empirical Analysis of the Credit Channel of Monetary Transmission in OECD Countries. 2026. https://doi.org/10.21203/rs.3.rs-8632769/v1
Paper 0 establishes a long-run cointegration and causal relationship showing that money supply and credit expansion affect inflation in OECD countries.
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Sayid Omar Mohamed Ali, Abdirahman Kasim Mohamed Abdullahi. An empirical analysis of the link between fiscal deficits, monetary expansion and inflation in Uganda (2007-2020). 2025. https://doi.org/10.17261/pressacademia.2025.2003
Paper 7 finds that money supply and fiscal deficits are primary drivers and Granger-cause inflation in Uganda.
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