What about Inflation ?give any idea to solve inflation....?

Question

give any idea to solve inflation....,Inflation

Answer 1

One might begin with: stop trying to run the country based upon old outdated 18, 19, 20 th. century ideas. Here's why, the world is a very different place now; the world population of human beings is vastly greater than way back then; it is no longer the age of the industrial revolution, but it is the age of information, as such, what is killing America is the failure of American leaders and, American themselves, to adapt to "CHANGE."

We need to step back and reevaluate what once worked, and what doesn't, and adjust our social/political system accordingly.  We have the tools at hand to fix what is wrong with our society, and that of the world's societies, but we cannot do it and hold on to past ideas and traditions at the same time.  The choice is ours: adapt and survive or hold onto the old ideas and perish.

Answer 2

Forget about other countries' money value, or whatever it is, and just keep the same prices all the time. I don't see why it can't be simple.

LOL. I'm so small-minded.

Answer 3

Inflation is a rise in general level of prices of goods and services over time. Although "inflation" is sometimes used to refer to a rise in the prices of a specific set of goods or services, a rise in prices of one set (such as food) without a rise in others (such as wages) is not included in the original meaning of the word. Inflation can be thought of as a decrease in the value of the unit of currency. It is measured as the percentage rate of change of a price index[1] but it is not uniquely defined because there are various price indices that can be used.

Many economists believe that high rates of inflation are caused by high rates of growth of the money supply.[2] Views on the factors that determine moderate rates of inflation are more varied: changes in inflation are sometimes attributed to fluctuations in real demand for goods and services or in available supplies (i.e. changes in scarcity), and sometimes to changes in the supply or demand for money. In the mid-twentieth century, two camps disagreed strongly on the main causes of inflation at moderate rates: the "monetarists" argued that money supply dominated all other factors in determining inflation, while "Keynesians" argued that real demand was often more important than changes in the money supply.

There are many measures of inflation. For example, different price indices can be used to measure changes in prices that affect different people. Two widely known indices for which inflation rates are reported in many countries are the Consumer Price Index (CPI), which measures consumer prices, and the GDP deflator, which measures price variations associated with domestic production of goods and services.

There are a number of methods that have been suggested to control inflation. Central banks such as the U.S. Federal Reserve can affect inflation to a significant extent through setting interest rates and through other operations (that is, using monetary policy). High interest rates and slow growth of the money supply are the traditional ways through which central banks fight or prevent inflation, though they have different approaches. For instance, some follow a symmetrical inflation target while others only control inflation when it rises above a target, whether express or implied.

Monetarists emphasize increasing interest rates (slowing the rise in the money supply, monetary policy) to fight inflation. Keynesians emphasize reducing demand in general, often through fiscal policy, using increased taxation or reduced government spending to reduce demand as well as by using monetary policy. Supply-side economists advocate fighting inflation by fixing the exchange rate between the currency and some reference currency such as gold. This would be a return to the gold standard. All of these policies are achieved in practice through a process of open market operations.

Another method attempted in the past have been wage and price controls ("incomes policies"). Wage and price controls have been successful in wartime environments in combination with rationing. However, their use in other contexts is far more mixed. Notable failures of their use include the 1972 imposition of wage and price controls by Richard Nixon. In general wage and price controls are regarded as a drastic measure, and only effective when coupled with policies designed to reduce the underlying causes of inflation during the wage and price control regime, for example, winning the war being fought. Many developed nations set prices extensively, including for basic commodities as gasoline.[citation needed] The usual economic analysis is that that which is under priced is overconsumed, and that the distortions that occur will force adjustments in supply. For example, if the official price of bread is too low, there will be too little bread at official prices.

Temporary controls may complement a recession as a way to fight inflation: the controls make the recession more efficient as a way to fight inflation (reducing the need to increase unemployment), while the recession prevents the kinds of distortions that controls cause when demand is high. However, in general the advice of economists is not to impose price controls but to liberalize prices by assuming that the economy will adjust and abandon unprofitable economic activity. The lower activity will place fewer demands on whatever commodities were driving inflation, whether labor or resources, and inflation will fall with total economic output. This often produces a severe recession, as productive capacity is reallocated and is thus often very unpopular with the people whose livelihoods are destroyed.

Answer 4

Recession, and higher interest rates. Tax rises, and more saving than borrowing and spending. We also need to try to keep the pound strong, otherwise we will simply import inflation.

Oh! I nearly forgot the most important thing of all. Put all the lefty union bosses in jail, because they really can make inflation much worse with their unreasonable pay demands.

Answer 5

Raise the tax.Raise the interest rates on loans.

Answer 6

limit the profits the fuel providers are allowed to make,how a company can keep on raising prices when making billions in profits is beyond me .as we are all seeing it has a knock-on effect with the cost of everything else rising .basically the multinationals have us over a barrel and theres nothing we or as it seems the government can do about it.

Answer 7

Get out of the global economy and become self sufficient.  That would also require people to return to sanity and stop thinking that 'having stuff' will solve all of their problems and make them happy.

Answer 8

use a pin.