2.1.2 Policies to Control Inflation (Edexcel A-Level Economics Teaching PowerPoint)

This teaching powerpoint covers Policies to Control Inflation

There are several different policies that governments and central banks can use to try and control inflation. One is to use monetary policy, such as raising interest rates, to reduce the money supply and slow down economic activity. Another is to use fiscal policy, such as reducing government spending or raising taxes, to reduce the amount of money in circulation. Governments can also try to control inflation by intervening in the economy directly, such as by imposing price controls. However, these policies can have unintended consequences and can sometimes make the problem worse.