nges in money supply, when money supply rises, the price level also goes up and the increase in price level is inflation.
             However, the Keynesians view inflation as a cause of ever-increasing money supply, they concentrate on the institutional problems of people increasing their price levels, and Keynesians argue that firms raise wages to keep their workers happy. Then firms have to pay for the extra wages and keep making profit by subsequently raising the prices, which causes an increase in both wages and prices and demands an increase of money supply to keep the economy running. So, the government then issues more and more money to keep up with inflation. (Lipsey, 1996)This view is different from the classical model. The classics view changing money supply as a cause of inflation while Keynesians view inflation as the cause of changing money supply.
             In reality, economists have been debating the causes of inflation for many years. Unfortunately, till now they can not make a consensus, however at least two theories are generally accepted:
             One theory is named Demand-Pull Inflation. According to Samuelson, inflation that is caused by general excess demand in the markets for final output and for factor of production is called de
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