Measures to reduce inflation

• Fiscal Measures: Increase Taxation –

• Raising direct taxes or indirect taxes to decrease consumer demand and spending.

• Fiscal Measures: Loan Levy & Surcharges –

• Introducing loan levies to reduce consumer disposable income, and surcharges on imported goods to make them unaffordable.

• Fiscal Measures: State Expenditure & Budget Deficits –

• Cutting back on government infrastructure projects and ensuring a non-inflationary budget deficit by using loans from the non-banking sector.

• Monetary Measures: Money Supply & Repo Rate –

• Adjusting money supply via open-market operations and raising the bank/repo rate to encourage savings.

• Monetary Measures: Credit Restriction & Moral Suasion –

• Restricting the granting of credit by commercial banks and applying moral pressure (moral suasion) to make financial institutions more careful.

• Other Measures: Productivity & Price Control –

• Improving long-term productivity through education and training, and fixing the prices of essential goods.

• Other Measures: Wage & Credit Policy –

• Keeping wage increases below or at the inflation rate to break wage-price spirals, and enforcing stricter conditions for consumer credit.

• Other Measures: Savings, Exchange & Indexation –

• Encouraging personal savings through tax cuts, relaxing import controls, adopting a floating exchange rate, and using indexation to link wages, pensions, and mortgages to price indices.