The following article will guide you about how can inflation be controlled. A. Monetary Measures: Anti-inflationary measures of a purely monetary nature are largely a matter of central bank policy. As one basic cause of inflationary rise in price is the excessive increase in money supply, monetary measures are adopted to reduce or control the supply of both currency and [...]
Let us make an in-debt study of the role of fiscal policy in controlling inflation. The economy's levels of output, employment, and income are influenced by the relationship between the amount that the government levies in taxes and the amount that it spends. A change in either taxes or spending may induce an expansion or contraction in the economy. Changes [...]
The following points highlight the top two cures to control inflation in money market. Cure # 1. Coping with Demand-Pull Inflation: If the cause of inflation is an excess of aggregate demand over output, then the remedy would seem to be either increasing output or reducing demand. It was noted earlier that demand inflation usually occurs when there is full [...]