How to reduce inflation rate?

Question

How to reduce inflation rate?

3 Answers

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Answer 1

The rate of inflation can only be affected at the government level. Economists have opposing ideas how this can be done. One side says lowering the interest rate that Fed charges on it's loans will help, and another side says that only way to reduce inflation is for government to increase interest rates and bring the amount of borrowing down.

Answer 2

deepak meena answered

You can set the fixed inflation rate parameters to reduce the rate and it can be more helpful in the future

Answer 3

Inflation can be reduced by a number of methods. The most common employed by governments or those in charge of fiscal policy, is to raise interest rates on money borrowed. This means that people are less likely to want to spend on borrowed money (at a higher cost) and will increase the pressure on market forces to compete for less liquidity in their respective markets.