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CONTROL OF INFLATION — Economics Keypoint

CONTROL OF INFLATION

Inflation can be checked through: –

  1. Budgeting for a surplus
  2. Open market operation.
  3. Monetary policy by increasing bank rate, liquidity ratio and reduction of commercial banks lending power.
  4. Reduction of import and excise duties.
  5. Increase in income taxes
  6. Effective price control board
  7. Wage and salary control or freezing.
  8. Increase in output of essential goods and services
  9. Over-hauling of distribution system
  10. Increase in supply of commodities.

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