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Problem with inflation

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Exterminador
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Post: #1
Problem with inflation

Ai!!

Sorry for any mistakes but the writing is through a translator ...

Someone could help reduce inflation? I've been looking in the forum but all I found was unsuitable ...

Any tips on other issues is well taken Smile

Thanks

PT
(Desculpem qualquer erro mas a escrita é através de uma tradutor...

Alguém me podia ajudar a reduzir a inflação? Já estive à procura no fórum mas tudo o que encontrava não se adaptava...

Qualquer dica sobre outros assuntos é bem aceite

Obrigado)

This post was last modified: 12.11.2010 17:06 by Exterminador.

12.11.2010 17:04
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ystradband
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Post: #2
RE: Problem with inflation

It looks like inflation has been caused by improvements to the standard of living. Suddenly people are richer than they were before and they are making the most of it. In fact, you could do with increasing the money supply as it's now a long way below your country's GDP. This is likely to cause more short term inflation, though.

I don't think there's much to worry about at the moment. Smile


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12.11.2010 17:14
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Exterminador
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Post: #3
RE: Problem with inflation

Thanks for the fast responseSmile

I still only managed to change the budget two times and they both increased the money supply by 8%, if so will increase even more ...

The money supply should be larger than the GDP is not?

12.11.2010 17:30
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Thatcherite
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Post: #4
RE: Problem with inflation

you have put in the minimum wage and have had a disaster rising food prices. i would encourage you to increase interest rates and to make cuts to government spending to bring down inflation. Some may advocate that this would tip your economy into recession, but remember it will leave a more dynamic and efficient economy one which can create the wealth for future government.
you could also reduce your budget deficit by cutting spending at the same time.

12.11.2010 18:44
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RichardAWilson
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Post: #5
RE: Problem with inflation

1. Raise your Excise-Taxes. (by the maximum)
2. Reduce your Capital-Taxes. (by the maximum)
3. Reduce your Acquisition-Taxes. (by the maximum)
4. Reduce your Customs. (by the maximum)
5. Leave your interest-rate unchanged.
6. “Freeze” your money-supply.
7. Reduce your spending across-the-board. (10% across-the-board)
My economy is booming and consumer-price inflation remains subdued. As long as it remains below 5% (annualized), I won't have a problem. Should it become a problem, I'll just raise interest-rates and freeze my money-supply.

13.11.2010 02:57
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Exterminador
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Post: #6
RE: Problem with inflation

Obrigado pelas ajudas!

Cumprimentos

15.11.2010 13:33
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Anthonie
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Post: #7
RE: Problem with inflation

Inflation has hit the entire world so badly that no country has not been spared.Specially the underdeveloped countries have their living dropped from the any standards of living.

27.12.2010 10:28
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