How can monetary policies be used to correct inflationary tendencies i

1.	How can monetary policies be used to correct inflationary tendencies in an economy?
Answer» Explanation: GOVERNMENTS can use wage and price controls to FIGHT inflation, but that can cause recession and job LOSSES. Governments can ALSO EMPLOY a contractionary monetary policy to fight inflation by reducing the money supply within an economy via decreased bond prices and increased interest rates.

How can monetary policies be used to correct inflationary tendencies in an economy?

Answer»

Explanation:

GOVERNMENTS can use wage and price controls to FIGHT inflation, but that can cause recession and job LOSSES. Governments can ALSO EMPLOY a contractionary monetary policy to fight inflation by reducing the money supply within an economy via decreased bond prices and increased interest rates.

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How can monetary policies be used to correct inflationary tendencies in an economy?

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