How to reduce inflation?
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To reduce inflation, several strategies can be employed. One approach is the implementation of an independent central bank and a currency board system, as discussed by de Haan and Berger . This can help to shape inflationary expectations and lead to lower wage inflation and core inflation rates. Another factor that can contribute to reducing inflation is a restrictive monetary policy, combined with foreign exchange intervention policies, as observed in Chile during the 1990s . Additionally, the introduction of a new inflation index, excluding exogenous factors, can allow for a lower inflation target and a narrower interest rate spectrum, as proposed for South Africa . Finally, a comprehensive exchange-rate-based stabilization program can be implemented, which may result in a reduction in the rate of inflation, although it may also lead to real exchange-rate appreciation and weaker export competitiveness .
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| Papers (5) | Insight |
|---|---|
| The paper discusses a comprehensive exchange-rate-based stabilization program that resulted in a sharp reduction in the rate of inflation. | |
| The paper discusses the Chilean experience of reducing inflation in the 1990s. It highlights three factors that helped in reducing inflation: an independent Central Bank with tough actions, a restrictive monetary policy, and higher labor productivity. | |
| The paper discusses the need to rethink traditional economic theory and policy advice in the wake of the global crisis, but it does not provide specific methods on how to reduce inflation. | |
Open access 01 Jan 2003 6 Citations | The paper discusses two ways to reduce inflation: the creation of an independent central bank and the introduction of a currency board. |
| The paper provides information about a device for reducing the inflation pressure in a vehicle pneumatic tyre. It describes a device that uses a valve block, non-return valve, control piston, and control valve to control the inflation pressure in the tyre. |
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