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Macroeconomics Inflation, As A Sign Term Paper

Applying limitations to credit consists in conducting a restrictive action on the distribution of particular credit. This instrument has certain limitations of its own:

the difficulty of setting norms regarding growth of the volume of credits; altering competition between banks and applying sanctions to the most dynamic; multiplication of the procedures designed to break certain rules.

The income policy is applied only if the excessive increase of incomes is a determining factor of the increase in demand and, at the same time, of the increase of salaries. The logic of this instrument is as follows: reducing incomes might reduce inflationary pressures.

Applying it in day-to-day life is done with difficulty, because of union pressure. This is why it has been rarely applied.

All there measures utilize one method:...

Frederic Mishkin, "The Economics of Money, Banking and Financial Markets," Harper Collins, 1989
2. C. McConnel, S. Brue, -- Economics --, McGraw-Hill, 1996

3. Inflation - Notes, www.bized.ac.uk/learn/economics/govpol/macrotargets/notes/inflation.htm

4. Inflation and the Phillips Curve, available on the Internet at http://cepa.newschool.edu/het/essays/keynes/inflation.htm

5. Information on the Phillips Curve, available on the Internet at http://www.j-bradford-delong.net/multimedia/PCurve1.html

Sources used in this document:
Reference:

1. Frederic Mishkin, "The Economics of Money, Banking and Financial Markets," Harper Collins, 1989

2. C. McConnel, S. Brue, -- Economics --, McGraw-Hill, 1996

3. Inflation - Notes, www.bized.ac.uk/learn/economics/govpol/macrotargets/notes/inflation.htm

4. Inflation and the Phillips Curve, available on the Internet at http://cepa.newschool.edu/het/essays/keynes/inflation.htm
5. Information on the Phillips Curve, available on the Internet at http://www.j-bradford-delong.net/multimedia/PCurve1.html
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