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Essentially, it is too much money chasing too few goods or services. The causes of the excess of available money and the shortages of a good or service are almost limitless but some of them are; the government prints too much money, too much credit is available (This is more the problem in the recent past - credit cards alone have created more money than any gov't.). A sudden change in society ( A fad, a disaster or financial manipulation, for example) can create an excessive demand for a product or service.

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