To bring disinflation to an economy,policy makers must:

Question

Quizplus · Accepted Answer

The most effective way to bring disinflation to an economy is to announce and commit to a credible policy of disinflation. This signals to the public that the central bank is serious about controlling inflation, which helps to anchor inflation expectations and reduces the demand for higher wages and prices. Slowing down labor productivity growth and increasing the money supply can both lead to higher inflation, while keeping unemployment below its natural rate can have negative economic and social consequences.

To Bring Disinflation to an Economy,policy Makers Must