Economics
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Exercise 3
- Some factors that contributed to reductions in the
inflation levels in the 1990s are listed below,
- Labour market reforms such as enterprise bargaining to
reduce costs and improve international
competitiveness.
- Trade liberalisation policies such tariff reductions
reduced costs and inflationary pressures.
- Falling inflationary expectations
- The Reserve bank “ fight-inflation-first”
approach using monetary policy
- Labour market reforms such as enterprise bargaining to
reduce costs and improve international
competitiveness.
- Reductions in the budget deficit and a move to a
neutral fiscal stance have decreased domestic borrowings
and helped lower interest rates.
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