The measures to control inflation

Monetary Policy

 Interest Rates
Central banks can adjust interest rates to influence credit conditions. An increase in interest rates tends
to dampen spending and borrowing, contributing to inflation reduction. Conversely, a decrease in interest
rates can stimulate economic activity.
 Inflation Targeting Policy
Some countries adopt an explicit inflation targeting policy, where the central bank sets an inflation target
to achieve. This helps clarify expectations and guides monetary policy decisions
The measures to control inflation

Fiscal Policy

 Control of Public Spending:

Governments can control inflation by managing their own expenditures. Reducing public
spending can help alleviate inflationary pressures

 Fiscal Policy:
Fiscal measures, such as changes in tax rates, can also be used to influence overall
demand and inflation.
The measures to control inflation

Price Controls

 Price Regulation:

In some cases, governments may directly intervene in the market by

regulating prices of essential goods and services.