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Premature tightening may lead to Stagflation: RBI
What is Stagflation and how it impacts the economy of a country? Suggest measures that can be taken by the Government and the Central Bank to counter stagflation. (250 words)
Approach:
- Introduce by defining Stagflation
- Enumerate the impact of stagflation on the economy
- List the measures that Government can take
- List the measures that the Central bank can take
- Conclusion
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