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Inflation and Fiscal Policy

#1 What measures can the government take to combat inflation?

#2 Can you describe the good side of inflation?

#3 Crude oil prices are a continuing hot topic, even though the debate may have worn thin. It is important because it impacts so much in our personal and business lives. Here's a different slant. There is a great misunderstanding about the fundamentals of how oil prices are set. I'd like to have your thoughts on how you think crude oil prices are set.

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1 What measures can the government take to combat inflation
main measures to cut down inflation are related to budgetary and taxation policies, lending and other fields, which can lead to improvements in the situation on the real estate market, labour market and boost productivity, as well as the competition policies.

A rise in several administratively regulated prices will be unavoidable today and for some years ahead, and this will primarily be related to energy import prices, as well as the alignment of excise duty rates (cigarettes, in particular) in line with the EU requirements. Also, in market economy conditions, the government does not have any administrative tools at its disposal to directly reduce prices of selected commodities or services. This means that the only available and effective way to fight inflation is a responsible fiscal policy and action focused on the problematic sectors (such as real estate market). This would directly ...

Solution Summary

Inflation and fiscal policy is analyzed in the government for crude oil prices are determined.