Do you have any idea to prevent inflation?

Question

Inflation is a big problem in our country now. Do you have any idea to prevent inflation? If yes say to all.

Answer 1

develop the low and middle class sector to a large extent so that they are not affected by the inflation

Answer 2

Remove every bottleneck to the production of goods and services, adopt a surplus budget, cut down wasteful and uneconomical spending.If possible increase the country 's capagity to produce.

Answer 3

Inflation is strictly a result of poor monetary policy, nothing else. To curb inflation, all you need to do is halt the creation of new money and/or remove existing money from the economy.

The definition of Inflation is too many dollars chasing too few goods. Its as simple as that. Sellers cannot raise prices on products/services if the money doesn't exist in the economy in the first place. So to curb inflation, you must attack the money supply. Anything less is merely lip service.

Answer 4

AS QUANTITY OF MONEY INCREASES VALUE OF MONEY FALLS. STOCK OF MONEY INCREASES THERE IS INFLATION IN THE COUNTRY.AS QUANTITY OF MONEY DECREASES VALUE OF MONEY INCREASES. STOCK OF MONEY FALLS MEANS THERE IS DEFLATION THROUGH OUT THE COUNTRY...................

Answer 5

Inflation means that your money is worth less mainly because there is too much money going around. So, Let's say we could buy 2 tissue boxes for one dollar. With inflation, you can only buy one tissue box for one dollar. A possible solution is to print less money. But it isn't that easy.

Answer 6

Why do you prevent it? Follow any one or all of the following to evade it:

1. Substitute costlier wants by cheaper wants

2. Change Present wants into future wants

3. Cash in future means ( convert future means into present means) by availing credit purchase or availing loans or premature withdrawal of longterm investments and enjoy life.

Please study economics as chemistry of wealth i.e. start studying nature, properties, composition, laws and classification of wealth.

Answer 7

Prevent Inflation :

Prices may be about to rise because production and transportation have become more difficult, so that each unit of finished product requires more man-hours of effort than before. Although time rates of wages remain unaltered, there is a rise in labor cost per unit, and

possibly in other unit costs also. Under these circumstances it is unlikely that taxation can keep prices down; taking away purchasing

power from consumers by taxation will not alter the fact that costs, per unit of finished output, will have risen. Prices must rise with costs

unless the government provides subsidies. Taxation could put prices back to the original level if the consequent decrease in consumer demand

brought about a sufficient reduction in the time-rate of wages, but this result appears highly unlikely. The only other possibility is

that, at a lower level of production enforced by added taxation, unit costs would be lower even with no decrease in time-rates of wages,

interest rate, and so on.

Similarly, if costs rise because the agents of production arbitrarily raise the price of their services by concerted action, taxation is no

cure. The business world in general might refuse contracts unless promised a higher rate of money profits; labor might insist on higher

rates of money wages.

BEFORE COMPUTING the amount of revenue needed to avert inflation, it is necessary to determine the kind of tax that is to be

used. Taxes differ in the degree to which they compress consumer spending. Moreover, other considerations are important, including

generally accepted standards of fairness, or at least absence of gross discrimination; administrative feasibility, including speed of application; preservation of incentive to work, especially overtime work in war industries.

Even the kind of tax revenue that comes entirely out of saving and hence does not check consumer spending at all is of some importance,

since it lessens the size of the post-war debt. The present computations indicate that inflation can be averted with an amount of taxation that is by no means large enough to balance the annual budget. The public debt can grow, though inflation is held in check. After the war, taxes necessitated by the interest on this greatly increased debt

might discourage private enterprise, chiefly because business is so largely a problem in risk-taking; taxation, especially taxation of income, shifts the odds against the risktaker. Consequently, there is some reason for setting the total amount of tax revenue to be raised during the war at a level above that needed merely to avert inflation,

this extra taxation being designed to come chiefly from funds otherwise idle. But this problem is deliberately excluded from the scope of the present work, aside from a brief reference to it in comparing the income tax with the sales tax; and even there the comparison between the two taxes assumes tax rates with equal consumption inhibiting, not revenue -raising, power.

Answer 8

to curb inflation, consumers need to curn fruitless wastefull expenditure. too much consumption feeds inflation. consumers also need to try to stop buying on credit: if you don't have the money to buy something, assess if you really need it. The Central Bank can also increase interest rates and this will decrease the rate of inflation in the long run