CHALLENGES THAT GOVERNMENT FACES WHILE CONTROLLING INFLATION? | indiashastra

CHALLENGES THAT GOVERNMENT FACES WHILE CONTROLLING INFLATION?

1. Supply side measures (ex. subsidies, MSP, restrictions on export etc.) show result only in long run
2. Government does not control Crude Oil prices
3. If government reduces expenditure it can adversely affect development activities
4. If government follows dear money policy banks won't lend much and firms will be starved of investment