Question

Why doesn’t the fact that the ‘’Inflation solution" is only a temporary solution to stop many developing countries from using it?

Answer 1

Explanation:

Remember, inflation is scenario in an economy in which there occurs a constant rise in the prices of commodities/services in the market, which may lead to a reduction of the money in circulation.

Although, developing countries could use alternative approaches such as taxation or cutting down government expenditure, they do not use this but prefer "inflation solution" because it appears to be the easy way out.

Since, taxes are always lesser than required to run the economies of developing countries they (the government) may not use this approach.