In order to counter the trend, the government and Federal Reserve could use fiscal and monetary policies to intervene the economy. ... To fix the inflationary window and prevent inflation, we can take a soft landing policy. ... When economy approaches the inflationary window; the best fiscal tool government could use is more taxation. ... However, when the economy approaches the inflationary window, the government and Federal Reserve should get involved and adopt fiscal and monetary policies to prevent the economy from getting inflated. ... Also the Federal Reserve could take an easy money po...

• Word Count: 1364
• Approx Pages: 5
• Grade Level: Undergraduate