What is the best way to control inflation?
CA Chaitanya (PRACTISING CA) (4283 Points)
19 July 2008What is the best way to control inflation?
seetaram kumar
(CA Final (First Group Cleared))
(109 Points)
Replied 19 July 2008
The best way to control inflation is stop export of essential commodities and also RBI should increase the Interest rates on loans so that buying power is reduced.
Ram
S.Srinivasaraghavan
(Chief Financial Officer and Co)
(11318 Points)
Replied 19 July 2008
The Best way to control inflation is self control. It begins at home.
1.Do not spend unnecessarily.
2.Do not spend on luxury items as if they are essential items.
3.Encourage purchases only from small traders who trade to ekeout a living.
4.Use public transport for commuting, do not use car if it is for only one passenger.
5.Do not borrow for luxury items. Use your credit card only to the extend you can afford to settle in full on due dates, that too only for buying essentials.
6.Do not provide add on cards for children.
7.Discourage going to all and sundry movies.
8. Do not indulge in any kind of speculative venture.
9. Understand that the advertisement on TVs by consumer products are paid out of your money. Discourage buying those products.
The above code of conduct will considerably reduce demand and hence inflation
Srinivas
(Finance Manager)
(113 Points)
Replied 20 July 2008
As the saying goes, rupee saved is rupee earned, one should try stop spending on wasteful/lavish items. As the definition of inflation is too much money chasing too little goods, controling the spenidng will result in decreasing demand, thus bringing down the prices, thus the inflation. Apart from this, the Govt measure of credit control will further supplement.
Srinivas, Bahrain
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