How To Tackle Inflation ?

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5 Terms

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Monetary Policy

The measures implemented by central banks to control inflation, such as increasing interest rates and reducing money supply through open market operations.

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Fiscal Policy

The actions taken by governments to control inflation by reducing government spending and increasing taxes to decrease aggregate demand.

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Supply-side Policies

The policies implemented by governments to increase the supply of goods and services, including investing in infrastructure, improving productivity, and reducing barriers to entry in markets.

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Wage and Price Controls

Temporary measures imposed by governments to limit inflationary pressures by controlling wages and prices.

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Exchange Rate Policy

The policy used by governments to adjust exchange rates, which can impact inflation by influencing import and export prices.