How does the Government Control Inflation?


The government can influence inflation by changing its fiscal and trade policies. The Federal Reserve controls the interest rates, which also affect inflation.
Q&A Related to "How does the Government Control Inflation?"
The primary job of the Federal Reserve is to control inflation. The main ways they do that is raising and lowering the fed funds rate, tightening or relaxing the amount of money allowed
As Inflation is defined as too many goods chasing too few goods, they can either raise interest rate in order to reduce consumption and make people save or reduce the money supply
The European Central Bank recently announced that they
It results in lower and stable interest rates. They therefore have a much more easier time borrowing if they need to. Lower and contained inflation reduces uncertainty and thus enables
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Inflation is when there is an increase in price and decrease in the value of money. The government tries to control inflation by raising interest rates. ...
Inflation is a contention issue in all around the world. In Malaysia the government has introduced instruments like asmonetary policies, fiscal policies and physical ...
To control inflation there should be an increase in the tax rate and an increase in the interest rate. The growth rate of money must be kept steady, the aggregate ...
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