Answer to, how government can control inflation, and brief explanation of what causes inflation in a country.
Summary of Topics
What is inflation?
In simple terms, inflation is the rice in the price of goods in a country due to decreasing value of its currency.
What Cause Inflation?
The major cause of inflation is the rice in price of goods
Others causes include;
- Over supply of money
- High National Debt
How can government control Inflation?
Measures that may be taken by the government to control inflation include:
Setting minimum and maximum wage limits to control salaries.
- Restricting imports
- Controlling of exports
- Restricting terms of hire purchase and credit terms of sale
- Price control
- Offer of subsidies and other incentives to local producers
- Controlling the supply and circulation of money in the economy
List of Countries with Highest Inflation Rate in Africa
Below is a list of countries with highest inflation rate in Africa (Last Updated 27th May 2019, Source: tradingeconomics inflation).
- Zimbabwe 75.8%
- South Sudan 56.10%
- Sudan 45.40%
- Liberia 23.30%
- Sierra Leone 17.46%
- Angola 17.36%
- Egypt 13.00%
- Ethiopia 12.90%
- Nigeria 11.37%
- Guinea 9.70%
- Ghana 9.50%
- Malawi 9.10%
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