Policies to control inflation

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  • Created by: Jess
  • Created on: 19-04-14 12:14

Cost-push inflation: increases in inflation caused by increases in the costs of production

  • If the government believes that inflation is caused by excessive increases in wage rates it may attempt to restrict wage rates. The government can do this is the public sector by restricting increases in government spending on public sector wages. It can restrict wages in the public and private sector by introducing an incomes policy
  • May try to lower firms' costs by reducing corporation…

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