Discuss the main method of controlling inflation. in point.
Answers
Answer:
Inflation can be controlled by a contractionary monetary policy is one common method of managing inflation. The aim of a contractionary policy is to reduce the supply of money within an economy by lowering the prices of bonds and rising interest rates. Thus, consumption falls, prices fall and inflation slows down.
Explanation:
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Explanation:
Inflation can be controlled by a contractionary monetary policy is one common method of managing inflation. The aim of a contractionary policy is to reduce the supply of money within an economy by lowering the prices of bonds and rising interest rates. Thus, consumption falls, prices fall and inflation slows down.
• Credit Control: One of the important monetary measures is monetary policy. ...
• Demonetisation of Currency: ...
• Issue of New Currency: ...
• Reduction in Unnecessary Expenditure: ...
• Increase in Taxes: ...
• Increase in Savings: ...
• Surplus Budgets: ...
• Public Debt: