Yes. Lower the rate of monetary growth. But do not just slam on the brakes. Instead, slow the rate gradually. Otherwise, a recession will be the result. First, one should have empirical evidence of the relationship between the rate of monetary growth and the rate of inflation. The relationship is NOT the "quantity theory." And it is not easy to estimate. It is not proportional and it is not linear. Second, there should be a theory that is linked to the evidence.

Preprint Money, Inflation, and a Macro Model

Peter F. Colwell

Thanks for your response. Maybe the lower the rate of monetary growth, the lesser the money in the market.

Increasing the interest rates would have the same effect. The higher the price of the money, the lesser the money in the market.

Less money in the market, would diminish prices, as people could buy less.

Is that the intended reaction?. To buy less diminishes prices, because of shorter demand, cause there is less money to use for buying.

That is quite certainly a liberal way, by using a not direct intervention.

What is your opinion on direct intervention on prices? By obligating them to be within a range proportional reasonably to the medium salary?

I do not know whether direct interest rate intervention would have the same effect. One would have to prove such a thing.

I am certainly not in favor of price controls.

In EU. The intervention of the price of gas by putting a limit seems to make positive effect.

Can you or anyone recommending, give reasonable arguments for not perform direct intervention of prices temporary? Taking into account the urgence of the problem.

Of course. Price controls misallocate resources. The results of these misallocations may not be immediately obvious. You can expect shortages. You can also expect disruptions in production. That is, shortages can disrupt production chains. Consumers/voters can be irritated or angered. The bottom line is that neither you nor anyone else knows what the precise impact will be of price controls. Better to leave them alone.

I understand. But, wouldn´t some sort of planification solve that misallocation problems?.

I don´t advocate for strong intervention, but the simple raising of interest rates, which is the main weapon for a big problem, is quite short or null in efficiency as it is shown.

Some others advocate for taxes diminishing. Pariculary VAT, but its effect is merely insignificant.

Are the liberal measures unefficient?.

I would seem that yes.