1. Monetary measures- Classical economists are of the view that inflation can be checked by controlling the supply of Some of the important monetary measures to check the inflation are as under:
    1. Increasing Bank rate
    2. Sale of government securities/Open market operations
    3. High Reserve ratio
    4. Issue of new currency
  1. Fiscal measures- Measures taken by the government to control inflation.
    1. Decrease in public expenditure- One of the main reasons of inflation is excess public expenditure like building of roads, bridges Government should drastically scale down its non essential expenditure.
    2. Delay in payment of old debts: Payment of old debts that fall due should be postponed for sometime so that people may not acquire extra purchasing power.
    3. Increase in taxes: Government should levy some new direct taxes and raise rates of old taxes.
    4. Over valuation of money: To control the over valuation of money it is essential to encourage imports and discourage exports.
  2. Other measures
    1. Expansion of output
    2. Encouragement to saving
    3. Overvaluation
    4. Proper wage policy
    5. Indexing
    6. Population control
    7. Rationing