my answers: the general price of goods will increase. Much money will purchase fewer goods. The producer will have to produce more so as to increase it sales. The public will suffer for this actions. Bank lending rate will be higher as demand for money will be of great importance.
Chat with our AI personalities
the central bank controls inflation through one of the following, open market operation,special deposit,cash ratio,bank rate,funding,credit ceiling etc.
Inflation rate is calculated by Reserve Bank of India . For inflation rate , basic necessitygoods price is taken as base and on that bases inflation rate is calculated.
Has the South African Bank failed in keeping inflation within the range of 3 to 6 percent? Discuss
Inflation.
In the U.K. inflation is controlled in principle by the Bank of England Monetary Policy Committee by adjusting the minimum lending rate ('bank rate') of interest. However, at the moment (October 2008) actual interest rates are higher and 'out of synch' with MLR.