METHODS TO CONTROL INFLATION [ PART 1 ] #Inflation 1. SUPPLY | UPSC Economy
METHODS TO CONTROL INFLATION [ PART 1 ]
#Inflation
1. SUPPLY SIDE MEASURE
As a supply side measure, the government may go for import of goods which are in short-supply—as a short- term measure (as happened in India in the case of ‘onion’ and meeting the bufer stock norm of wheat).
As a long- term measure, governments go on to increase the production to matching the level of demand. Storage, transportation, distribution, hoarding are the other aspects of price management of this category.
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