Inflation in the country is now at 20% per year. Mrs J thinks this is too high and would like to bring it down to 14% on average during her 10-year presidential term. The common approach is to cut money supply, how much money supply should be cut?

The Central Bank of the country has estimated that it would take 6 years to reduce inflation down to 14% based on your recommended approach above. Mrs J thinks 6-years is too long, but is reluctant to consider more drastic cuts in money supply. What are you alternatives? Explain (2 points).