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Monetary PolicyWith growth of 3.8%, demand in the economy could be growing faster than capacity can grow to meet it. This leads to inflationary pressures. We can term this demand pull inflation. Therefore, reducing the growth of Aggregate demand, should reduce inflationary pressures.The Central bank could increase interest rates. Higher rates make borrowing more expensive and saving more attractive. This should lead to lower growth in consumer spending and investment. A higher interest rate should also lead to higher exchange rate, which helps to reduce inflationary pressure bymaking imports cheaper.Reducing demand for exports andIncreasing incentive for exporters to cut costs.Fiscal PolicyThe government can increase taxes (such as income tax and VAT) and cut spending. This improves the budget situation and helps to reduce demand in the economy.Both these policies reduce inflation by reducing growth of Aggregate Demand. In Nigeria's case, the economy seems to be growing reasonably strongly. Therefore, we can reduce inflationary pressures without causing a recession.If Nigeria had high inflation and negative growth, then reduce aggregate demand would be more unpalatable as reducing inflation would lead to lower output and higher unemployment. They could still reduce inflation, but, it would be much more damaging to the economy.
It caused inflation as well as people in the Americas making their own money, not the government's.
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 by selling out assets and then burn off the money they get away(to reduce the total money in the economy).
Inflation is a general and sustained rise in the level of prices over two financial quarters in an economy. The government is worried about inflation because it has negative repercussions on its ability to achieve its macro- economic objectives. For example, inflation could result in higher unemployment. Firms seek to cut costs during a period of inflation and could lay off workers.
Solutions for inflation are, A. Technological advancement as it will decrease the per unit cost in the country and will support the industries to meet the excess demand pull and cost push problems. That will reduce the inflation in Pakistan. B. If it is demand pull inflation so Government should charge higher amount of taxes and facilitate more with the help of subsidies to firms by which they could meet up the problems of excessive demand and cost problem. That will also surely help us to solve the Inflation problem in Pakistan. By: Ghamz-e-Ali falconsial@yahoo.com
Monetary PolicyWith growth of 3.8%, demand in the economy could be growing faster than capacity can grow to meet it. This leads to inflationary pressures. We can term this demand pull inflation. Therefore, reducing the growth of Aggregate demand, should reduce inflationary pressures.The Central bank could increase interest rates. Higher rates make borrowing more expensive and saving more attractive. This should lead to lower growth in consumer spending and investment. A higher interest rate should also lead to higher exchange rate, which helps to reduce inflationary pressure bymaking imports cheaper.Reducing demand for exports andIncreasing incentive for exporters to cut costs.Fiscal PolicyThe government can increase taxes (such as income tax and VAT) and cut spending. This improves the budget situation and helps to reduce demand in the economy.Both these policies reduce inflation by reducing growth of Aggregate Demand. In Nigeria's case, the economy seems to be growing reasonably strongly. Therefore, we can reduce inflationary pressures without causing a recession.If Nigeria had high inflation and negative growth, then reduce aggregate demand would be more unpalatable as reducing inflation would lead to lower output and higher unemployment. They could still reduce inflation, but, it would be much more damaging to the economy.
Education could be offered to children living in poverty so that they could have better opportunities of finding jobs with higher pay. Also, trade programs could be set up to help the government of developing countries to earn more money. For example, the United Nations organized a "Oil-for-Food" program in 1995, enabling the Iraqian government to sell oil in exchange of money to import food for its citizens.
One could be by Rent Control and another of Price Ceiling
It caused inflation as well as people in the Americas making their own money, not the government's.
No. Individuals are responsible for their own actions.
In fact, the inflation was stopped and the currency stabilized in 1923-24. It involved massive deflation and was successful.
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 by selling out assets and then burn off the money they get away(to reduce the total money in the economy).
Inflation is a general and sustained rise in the level of prices over two financial quarters in an economy. The government is worried about inflation because it has negative repercussions on its ability to achieve its macro- economic objectives. For example, inflation could result in higher unemployment. Firms seek to cut costs during a period of inflation and could lay off workers.
No, the spoils system was based around corruption. In general there wasn't much anyone could do to reduce corruption, it was a corrupt government.
There could be a number of answers to this; however, the general answer would be a "Republic".
Solutions for inflation are, A. Technological advancement as it will decrease the per unit cost in the country and will support the industries to meet the excess demand pull and cost push problems. That will reduce the inflation in Pakistan. B. If it is demand pull inflation so Government should charge higher amount of taxes and facilitate more with the help of subsidies to firms by which they could meet up the problems of excessive demand and cost problem. That will also surely help us to solve the Inflation problem in Pakistan. By: Ghamz-e-Ali falconsial@yahoo.com
An aggressive tone. For example, if the Fed Reserve uses hawkish language to describe the threat of inflation, one could reasonably expect stronger actions from the Fed Reserve.