Combating Inflation Flashcards
1
Q
what are the main 2 measures to combat inflation?
A
Monetary measures
Fiscal measures
2
Q
how can monetary measures combat inflation?
A
decrease the money supply (restrict credit)
set inflation targets (3-6% in 2000 by SARB)
3
Q
who provides monetary measures?
A
central bank… SARB
4
Q
how can fiscal measures combat inflation?
A
taxation (surcharge) government spending and borrowing increase productivity (tax rebates)
5
Q
who provides fiscal measures?
A
government
6
Q
what are other ways to combat inflation?
A
price control
wage control
credit control
