what are the best ways to reduce inflation?

[BrokenDave]

Would love your ideas. All I know it increase the current interest rate.

[Boomer21]

Increase taxes as well. All taxes should help but raising income or business taxes will really help. Basically anything that will slow the economy will help.

[Ihostlong]

Originally posted by Boomer21:

Increase taxes as well. All taxes should help but raising income or business taxes will really help. Basically anything that will slow the economy will help.

that is not logic, raising taxes => less supplyside economics => more demand due to goverment programs => thus inflationary

[Boomer21]

Originally posted by Alerta Alerta Antifacista:

Originally posted by Boomer21:

Increase taxes as well. All taxes should help but raising income or business taxes will really help. Basically anything that will slow the economy will help.

that is not logic, raising taxes => less supplyside economics => more demand due to goverment programs => thus inflationary

No raising taxes along with raising interest rates removes currency from the general population and discourages spending. Your example holds true assuming he increases government spending to compensate for the lack of purchasing power. In fact, that is exactly what I am telling him not to do.

[Heidong]

The best way to fight inflation is avoid inflation, but we all know that in this game sometimes is difficult. Try to slow down your infrastructure spending and avoid annexing countries too fast...

In any case, going back to topic, while interest rate, income tax, VAT help I think a little bit can help also the rent cap. In any case when the inflation start to spike the only real solution is to pray.

[☠ᛒᚱᛟ Leaf☠🇨🇦 ⚘]

ight so i had inflation creep up despite low growth i must have stalled my economy to long and made my dollar too strong so guess what i did and im shocked this game is that realistic then again why else would i put up with the bugs if it wasnt so i basic had a horde pile of treasure collecting intrest and cause i think im african nation it was insane my return or somthing idk but basic what i did was kill my currency let inflation rise and did massive subs to my sectors killing my currency and i raised all state employees pay massive and family and basic income and job seeker to like 70percent 12 months i call this little strategy the china strat basic gave other countrys the middle finger and increased growth insane to point it was outstripping the inflation and it killed my currency faster then the inflatiation cause growth was higher then said inflation and it killed my imports fast i also dropped intrest rates to almost 0 im sure what i did was tech illegal but the world trade kicked me out at the start of the game so ♥♥♥♥ em

[Joghurt Férfi™ KEKSZDROP.COM]

when i played as Hungary, i reduced expenses by cutting money from social security, raised exchange rate to 20%, one year passed and i could join the euro and i destroyed euro by spamming subsidies and then i left euro

[AlittaalittA]

Originally posted by Rocco Siffredi:

when i played as Hungary, i reduced expenses by cutting money from social security, raised exchange rate to 20%, one year passed and i could join the euro and i destroyed euro by spamming subsidies and then i left euro

when i played Hungary I made monetary union with Germany/Austria/Poland and my GDP became the 3rd largest behind china and US.
Made good trades for 3 years to accumulate some cash in treasury then left the monetary union which weakened all other members and the euro XD XD

[AlittaalittA]

Originally posted by BrokenDave:

Would love your ideas. All I know it increase the current interest rate.

anything that limits your growth, inflation around 5% is OK, and easy to bring down or up when it;s needed.

[AlittaalittA]

Originally posted by Ihostlong:

Originally posted by Boomer21:

Increase taxes as well. All taxes should help but raising income or business taxes will really help. Basically anything that will slow the economy will help.

that is not logic, raising taxes => less supplyside economics => more demand due to goverment programs => thus inflationary

it is logic, relevant taxes limit growth which is main factor for inflation