The government can reduce inflation via monetary policy, fiscal policy or exchange rate policy. These are the major counter inflation policies.
Posts tagged as “monetary policy”
Monetary policy is concerned with the money supply to the economy, interest and the amount of credit available to households and firms.
The government can slow down economic growth by decreasing its own government spending, through higher TAXes and increasing interest rates.
Government intervention may either support business activity to speed up economic growth or restrain it to slow down the economy.
Different businesses on the market will be impacted to a various degree by the government involvement in markets.
All governments around the world have economic objectives for the nation’s economy to achieve by using specific economic policies.
The politics and regulations of businesses have tremendous influence on firms, customers and competitiveness on the market.