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 ?
A decision on the gradual correction of the prices of commodities in particular the energy carriers as well as the government services may lead to a hike in the prices but it will probably perform as anti-inflationary measure due to its role in helping the administration tackle the budget deficit.
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.
He said the ABF has also proposed to reduce the rate of GST by two per cent per annum to 10 per cent over the next few years as an anti-inflationary measure and to stimulate the economy.
Namely, the policies need to focus on macroeconomic fundamentals, progrowth, anti-inflationary measures and pro-government savings.
According to them ,if adequate anti-inflationary measures are not taken on top priority basis, the overall general inflation might remain in double digit figure which poses a severe threat to macro-economic stability.
It is possible to identify the anti-inflationary measures targeting excess demand and inflation by tempering factors that determine costs.
Indian share prices fell for the first time this week on investors' concerns that anti-inflationary measures being taken by the central bank have started to cool demand and hurt corporate earnings.
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.