Answer to, how government can control inflation, and brief explanation of what causes inflation in a country.
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%
Want to learn more about inflation Africa? Read this Journal done by Philip Hans Franses from Erasmus School of Economics.
Do not miss all our latest updates on inflation rates and definitions
Lastly, do you have any question about this post or something else? We are responding. Ask us a question or register to join a community of 235k+ members that receive latest education news.For advertising and news tips, email firstname.lastname@example.org
Leave a Reply