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Can Inflation be reduce in an specific way?

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albiceleste101
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Post: #1
Can Inflation be reduce in an specific way?

Just that, is inflation a problem that could be reduce by following steps or depends on the country's policies and orientations?

(I didn´t find this on the forum)

15.09.2012 22:19
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Helsworth
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Post: #2
RE: Can Inflation be reduce in an specific way?

Some template states have a different inflation behavior than others. The way to tackle that is to not aggressively increase the money supply, by reducing excise, reducing taxes, task options and reforms. The flat income tax encourages savings and stimulates capital formation and gross investment, while the negative income tax lowers savings and causes inflation. Try keeping your money supply proportional to your GDP. As long as you're having real growth, inflation doesn't really matter.


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15.09.2012 22:56
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albiceleste101
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Post: #3
RE: Can Inflation be reduce in an specific way?

Helsworth Wrote:
Some template states have a different inflation behavior than others. The way to tackle that is to not aggressively increase the money supply, by reducing excise, reducing taxes, task options and reforms. The flat income tax encourages savings and stimulates capital formation and gross investment, while the negative income tax lowers savings and causes inflation. Try keeping your money supply proportional to your GDP. As long as you're having real growth, inflation doesn't really matter.




Thank you!

16.09.2012 04:31
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Helsworth
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Post: #4
RE: Can Inflation be reduce in an specific way?

Don't mention it Wink


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16.09.2012 09:42
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Richard Wilson
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Post: #5
RE: Can Inflation be reduce in an specific way?

Inflation isn't a real problem as long as you're still generating real growth. Reduce your tariffs to promote competition. Keep your excise taxes reasonable. Focus on growth.

23.12.2014 05:16
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Alexei B.Miller
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Vlaxia
Post: #6
RE: Can Inflation be reduce in an specific way?

I agree with these gentleman, just don't sacrifice inflation index for a balanced budget. You really just to attain a highly valued currency buts that's a whole nother topic...


"Hitler wanted to destroy Russia, everyone needs to remember how that ended"

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23.12.2014 11:53
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