Control and Conclusion of Inflation
-
Upload
sushantgawali -
Category
Documents
-
view
4.641 -
download
0
description
Transcript of Control and Conclusion of Inflation
INFLATION
Group Members
Sushant Gawali M 3010 Harshad M 3059 Sandeep Singh Hemant Sarang M 3044 Aditya Bhujbal M 3002 Varsha Veena M 3009 Lavanya Jaymala Pandey Dhanashree Mahekar
Measures to Control Inflation
MONETARY POLICY
OTHER MEASURES
FISCAL POLICY
Measures to Control Inflation
Monetary Policy:
It aims at reducing money supply in the market.
- Credit Control
- Demonetization of Currency
- Issue of New Currency
Measures to Control Inflation
Fiscal Policy:
Monetary policy alone is not sufficient to control inflation therefore it is supported by fiscal measures. It majorly pertains to taxation and interest policies.
- Reduction in Unnecessary Expenditure
- Increase in Taxes
- Increase in Savings
- Surplus Budgets
- Public Debt
Measures to Control Inflation
Other Measures:
Are those which aim at increasing aggregate supply addressing aggregate demand directly:
- Increase production
- Rationale wage policy
- Price control
- Rationing
Conclusion
From various monetary, fiscal and other measures it becomes clear that to control inflation government should adopt all measures simultaneously.
Inflation is like a hydra-headed monster which should be fought by using all the weapons at the command of the government.