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Process to control inflation rate

The belief that control of inflation must be the primary economic objective of government can be traced back to neo-liberal revolution that started in the mid-1970s. Free-market economists argue that price stability is necessary for long-term economic growth since it creates necessary conditions for business confidence and private sector investment. If inflation is seen to be out of control then confidence is destroyed, businesses become uncertain and economic activity stagnates.

 

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M9575149

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