Inflation

nflation is a hydra header monster. It cannot be controlled by taking a single measure. However, if monetary and fiscal measures are wisely coordinated, it can greatly help in controlling the continuous process of rising prices. The main anti inflationary measures both short and long terms are:Containing money supply;The monetary supply should be kept within reasonable limits.

Reducing budgetary deficit;The budgetary deficit should be kept low level. The deficit should be met by disciplined policy of demand management.Emphasis on commodity producing sectors:The government should give special attention to the production of cottons, wheat, vegetables, edible oil etc. it will have soothing effects on inflating.

Commodity balance:The government should have a strict watch on the prices of essential commodities in the country. It should take immediate steps in changing the import and export duties and maintain the availability of goods is reasonable prices.Curtailment of administrative expenses:The curtailment of administrative expenses can have a softening effect on inflation.Closing of the utility stores;The net work of over 700 utility stores has not helped in stabilizing the prices in the country. These are mostly located in big cities and posh localities. The low income groups are least benefiting from them. The earlier they are closed, the better it is.