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Hello Friends..

Inflation. Every country tries to avoid such a situation. Our country Indonesia has actually experienced this from year to year. Then what exactly is inflation?

For example, today with Rp 10,000 we can buy one kilogram of oranges. However, due to inflation, the next day we no longer receive 1kg of oranges for Rp 10,000. We have to spend up to Rp 20,000 for 1kg of oranges. That's inflation, a situation where the value of a currency falls.

Basically, inflation occurs when demand is greater than supply. This situation will create scarcity of goods. As we know, when goods are scarce, they are expensive. That's how inflation starts. Then what is the impact? The currency becomes weak and loses its value. Of course, other factors make inflation bigger and harder to control.

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Yes, we know that inflation is a common thing that happens in many other countries in the world. But just imagine if it was ignored. What impact will it have? I think the economy of a region could be destroyed.

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So, how to reduce inflation?

Reducing inflation in my opinion is a fiscal policy for the country level. It requires careful attention and action. Because the level is policy, of course it can affect many people. Especially the level of public welfare.

But if it's just an opinion, I think there are several ways that are usually done by the government.

1. Reduce the amount of money in circulation with tight monetary policy.
2. Reduce spending or increase revenues by increasing revenues through tax increases.
3. Regulating the price of goods by providing subsidies or the like
4. Implementing regulations so that there is healthy competition in the market. So that there is no monopoly that will cause price fluctuations.

Actually, there are still many ways that can be done. But I only thought of a few and that's all I can give.

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so that's my little post on the familiar topic of inflation. thanks for reading my post.

Wassalam
@lil.albab