inflationary policies

Inflationary policies refer to government or central bank actions that intentionally stimulate a rise in the general price level of goods and services within an economy over time. These policies typically involve increasing the money supply, reducing interest rates, or implementing fiscal measures to boost aggregate demand, thereby encouraging spending and investment. The goal of such policies is to promote economic growth, combat deflationary pressures, and maintain a moderate level of inflation for optimal economic stability and employment.

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