What did the government do to try combat inflation?

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Deborah Villegas

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6 March, 20:28

What did the government do to try combat inflation?

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Makaila Jefferson · Answer 1

Governments can use wage and price controls to fight inflation, but that can cause recession and job losses. Governments can also employ a contractionary monetary policy to fight inflation by reducing the money supply within an economy via decreased bond prices and increased interest rates.