Wednesday, December 27, 2017

INFLATION CAN BE CONTROLLED






Talking about the inflation rate of the country is a reality where our future  for survivability as a nation becomes bleak under unfavorable figures of inflation. 

The most important and commonly used method to control inflation is monetary policy of the Central Bank. Most central banks use high interest rates as the traditional way to fight or prevent inflation. Bank rate policy is used as the main instrument of monetary control during the period of inflation - India infoline

The new TRAIN is a factor at this point, that while the noble objective is to gain more revenues for the government thru this tax measure, the condition of the current level of tax base and sources to produce  revenues for the government makes them unable to deliver and contain cost production results that may hurt consumers.That in spite of gaining more, it is expected that prices cannot be controlled going up,  thereby, inflation  becomes inevitable.


The US dollar rate is a moving factor for inflation. Under the situation of a low export and a higher import, will mean the rule of supply and demand  for currency exchanges.

To reverse inflation, we must encourage larger exports than imports as means to 

The economic situation of the country is expected to remain therefor in a level where it is dependent on our sources of our export trade that uses the US dollar.

Manufacturing

Manufacturing should be strengthened to boost more product lines for export of the country as a leverage to balance the volatility of the dollar. This sector will counter the trade imbalance affecting our net exports that would result to controlling  exchange rates, and make stability that may further decline price goods.

Industrialization

Industrializing the economy will mean more manufacturing that will result to bigger exports. The effect of industrialization program will spur trade and commerce that will spread more of the tax base of the country  result to more government revenues. With increased tax base, there will be no need for further raised tax revisions and reforms.




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