Checking of Inflation

Checking of Inflation:

As inflation has many evils, each and every government attempts to check it. Inflation has destroyed numerous economies. For illustration the inflation that occurs in the year 1923 in Germany destroyed her economic system. Inflation can be checked by a few or all of the measures shown below:

(A) Increased taxation

(B) By reducing government expenditure on capital projects.

(C) Restrictions on imports.

(D)Rationing and

(E) Price controls.

At times a “wage freeze’ is suggested to the check inflation. That is, trade unions will be demanded not to ask for an augment in salaries during a specified period. The success of the above measures in tackling inflation based on the effectiveness of the government in applying the measures.

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