👉 Inflation engineering refers to the deliberate and strategic actions taken by central banks or governments to influence the rate of inflation in an economy, often with the aim of stabilizing prices and achieving macroeconomic goals. This can involve a variety of monetary policy tools, such as adjusting interest rates, conducting open market operations (buying or selling government securities), and altering reserve requirements for banks. By lowering interest rates, central banks can encourage borrowing and spending, potentially boosting economic growth but also risking inflation. Conversely, raising rates can curb excessive spending and cool down an overheating economy, though this might slow growth. Inflation engineering also includes fiscal policies, like adjusting government spending and taxation, to complement monetary efforts. The goal is to maintain price stability while supporting sustainable economic growth, avoiding the pitfalls of hyperinflation or deflation.
