What steps would you advise the central bank should take

Reference no: EM133713063

Problem

What is inflation? Suppose an economy has demand-pull inflation that is significantly above a target level set by the country's Central Bank. Suppose you are an economic advisor to the central bank. What steps would you advise the central bank should take to reduce inflation? Describe carefully how the steps you suggest will lead to a lower rate of inflation. Who is likely to loose from high rates of inflation, and who is likely to benefit?

Reference no: EM133713063

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