How do you stop inflation?

To stop inflation, governments can use monetary policy (such as increasing interest rates) and fiscal policy (such as decreasing government spending) to decrease the money supply and decrease demand in the economy. Additionally, implementing structural reforms and increasing productivity can also help to stop inflation.

The effects of inflation are often not directly felt but are played out over a long time, especially long-term investments are vulnerable to inflation.


At Horizon65, we created a mobile app that enabled you to check the effect of inflation on your savings.

Similar Questions

How money supply affects inflation?

Inflation is the rate at which the general level of prices for goods and services is rising and subsequently, purchasing power is ...

How is interest rate and inflation related?

Interest rates and inflation are closely related. When the economy is strong and growing, demand for goods and services increases,...

How to calculate inflation rate?

To calculate the inflation rate, you will need to use the Consumer Price Index (CPI) from the Bureau of Labor Statistics. The form...

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