Disinflation is engineered through monetary expansions.

Question

Quizplus · Accepted Answer

Disinflation is actually engineered through monetary contractions, which typically involve reducing inflationary pressures by tightening monetary policy and reducing the money supply. This can be done through actions such as raising interest rates, selling government securities, or increasing reserve requirements for banks. Expansionary monetary policy, on the other hand, is typically used to stimulate the economy and promote growth, which can lead to higher inflation.

Disinflation Is Engineered Through Monetary Expansions