11. Incomes policies are often presented as a preferable alternative to deflation since inflation can be reduced without higher unemployment. 12. Holding down money wage increases can reduce both inflation and real wage rises, as lower cost increases enable employers to raise profit margins where competition is weak. 13. The emphasis was on reducing inflation, increasing the competitiveness of the private sector, controlling the public deficit, and increasing the efficiency of the state sector. 14. Also, a stronger currency can reduce inflation and help interest rates fall. 15. Although the policy raises interest rates in the short term, in the long term it reduces inflation by strengthening the peso and encouraging foreign investment. 16. An increase in the cost of borrowing would give a boost to the deutsche mark, which in turn would reduce inflation by cutting import costs. 17. At the same time, they are succeeding in reducing inflation, a force that has traditionally pushed the price of gold higher. 18. A stronger peso makes Mexican stocks more valuable in dollar terms and can help to reduce inflation by making imported products cheaper. 19. A strong peso makes Mexican stocks more valuable in dollar terms and can help reduce inflation by making imports cheaper. 20. A weaker currency will make it even more difficult to reduce inflation. |