Anti-Inflationary Measure

Anti-Inflationary Measure

Any policy a central bank or other agency takes to reduce the inflation rate. In general, anti-inflationary measures involve raising key interest rates, sometimes dramatically, to cut down the money supply. Other anti-inflationary measures include things like instituting price controls, changing the peg of a currency, and outlawing inflation. Raising interest rates, however, is considered to be the best anti-inflationary measure for a floating, fiat currency. See also: Tight money.
References in periodicals archive ?
The yeni Turk lirasy (new Turkish lira; YTL) was used between 2005 and 2008 as an anti-inflationary measure.
However, the anti-inflationary measure had a telling effect on the economy.
He said the ABF has also proposed to reduce the rate of GST by 2% per annum to 10% over the next few years as an anti-inflationary measure and to stimulate the economy.
The AA called on Finance Minister Charlie McCreevy to reduce the duty on diesel to help motorists and as an anti-inflationary measure.
The SSIAs were designed as an anti-inflationary measure, to encourage thrift and to cool down the then booming economy.
Namely, the policies need to focus on macroeconomic fundamentals, progrowth, anti-inflationary measures and pro-government savings.
The Company's results may be adversely affected by changes in the political and social conditions in the PRC and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation.
EThe recent decline is also attributable to a slight drop in cargo traffic with Asia, following the countercyclical and anti-inflationary measures in China and the impact of the earthquake in Japan.
0 per cent, as government has taken several anti-inflationary measures.
With worries over inflation grabbing the headlines, the budget also includes some anti-inflationary measures.
government unveiled a set of anti-inflationary measures, including a freeze in
Pranab Mukherjee, however, said inflation is a major area of concern, adding that the Government has taken a number of anti-inflationary measures to bring down the rate of inflation, which has moderated to 8.