PRICE INFLATION (LIBERALISM)

1. Main focus of the problem?

From a liberal perspective, price inflation is seen as a problem of supply and demand in
the market. According to liberal theory, prices are determined by the interactions of supply and
demand, and inflation happens when the demand for goods and services exceeds the available
supply.

2. Role of political actors?

From a liberal perspective, political actors play a crucial role in addressing the problem
of price inflation. This is because inflation can be caused or exacerbated by government policies
and actions, such as excessive money printing or intervention in markets.

3. Strategies and actions to be taken?

From a liberal perspective, the solution to inflation is to address the underlying market
imbalances that are causing the problem. This can be achieved through a variety of policy
measures, including increasing the supply of goods and services, improving the efficiency of
markets, and implementing monetary policies such as tightening the money supply to reduce
demand.