Businesses report that the prices of many inputs to the production process are increasing, and they also sense a return of “pricing power” that has allowed them to pass on at least some of these cost increases to their customers; my impression is that of late a greater number of stories in general-circulation newspapers have focused on rising prices and their effect on households; and expectations by economists and households of near-term inflation have moved higher.
This can be achieved through: •  Restrictive fiscal policy, directed at limiting public consumption and incomes  •  Increase of the efficiency of public companies, primarily through a.  accelerated separation of core from ancillary activities  b.  privatization  c.  reduction of the number of employees.