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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.
Download our app and start gaining insight into your current and future finances.
