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INFLATION

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Page 1: Control and Conclusion of Inflation

INFLATION

Page 2: Control and Conclusion of 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

Page 3: Control and Conclusion of Inflation

Measures to Control Inflation

MONETARY POLICY

OTHER MEASURES

FISCAL POLICY

Page 4: Control and Conclusion of Inflation

Measures to Control Inflation

Monetary Policy:

It aims at reducing money supply in the market.

- Credit Control

- Demonetization of Currency

- Issue of New Currency

Page 5: Control and Conclusion of Inflation

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

Page 6: Control and Conclusion of Inflation

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

Page 7: Control and Conclusion of Inflation

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.


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