How can you lower the inflation rate?

Answer 1

Invest your money. Passbook savings accounts are not a good hedge against inflation. Buy something when the price is low, and hope for the best, or put your money into a money market account. In order to do that, you first have to accumulate money. For many people, the best way to start is with a savings account to which they make regular deposits.

If you can deposit $50 every two weeks for a year, you will have sufficient funds to invest in a broad range of much better investment tools.

Answer 2

the easiest way is to raise the interest rate which will give people less money to spend and therefore curb spending and curb inflation. the government can also raise taxes which will have the same effect.

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p.s different things work for whether the inflation is caused by demand pull or cost push.

Answer 3

There are a number of ways to protect financial assets during times of high inflation. Firstly one can invest in Treasury Inflation Protected Securities which are adjusted every six months to keep up with inflation. Secondly one could buy into commodities. As inflation rises so does the prices of basic commodities such as food, metals and fuel. A third way to combat inflation is to invest in property. Property is historically a good long term investment that will not be eroded in times of inflation.

Answer 4

- Avoid debt, which becomes more expensive to maintain as rates rise.

- Get a (government) job where wages are indexed to inflation.

Answer 5

don't pop it.

Answer 6

Stop printing money.

Answer 7

how can we deal with hyperinflation