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From course:

inflation and interest rates L10 M2 economics

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Question:

Policies to help inflation

Author: Dakota howells



Answer:

Demand pull inflation: 1. Increases in interest rates and a tightening of the supply of credit 2. Contradictory fiscal policy – higher taxes and cuts in state spending Cost push inflation: 1. Supply side policies to increase productivity 2. Labour market reforms to increase labour supply


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