Measures to Control Inflation

Measures to Control Inflation

It is not easy to control inflation by using a particular measure or instrument. The main aim of every measure is to reduce the inflow of cash in the economy or reduce the liquidity in the system.

Types: Monetary Measures; Fiscal Measures; Price Control

Monetary Measures

The government of a country takes several measures and formulates policies to control economic activities. Monetary policy is one of the most commonly used measures taken by the government to control inflation.

Role of Central Bank: The central bank increases rate of interest on borrowings for commercial banks.This would reduce money supply in ....

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Indian Economy