Part 7/9:
Additionally, tax cuts must be closely monitored to ensure they do not exacerbate deficits. A simultaneous reduction in revenues could necessitate even larger spending cuts, further complicating the objectives of maintaining low interest rates while fostering growth.
Beyond fiscal measures, deregulation stands as a viable solution to curb inflationary pressures effectively. By dismantling restrictive regulations on production and energy, the government could enhance the supply of goods and services, consequently reducing prices. Lower prices would, in turn, diminish the pressure on lenders to inflate interest rates based on perceived increased risks.