Policies   (measures) to control inflation   in developing    countries

1. Selling government securities to the public. This is aimed   at reducing   money   supply   and aggregate demand in the economy as a way of controlling   inflation.
2. Increasing direct taxes. This helps to reduce the disposable incomes   of the individuals    and to check on aggregate demand.
3. Reducing government  expenditure  for example  through  retrenchment   so as to reduce  on money supply  and aggregate  demand  in the economy.
4. Maintaining political stability and security by the government   through democratic   governance and use  of amnesty  act.   This helps to create a favorable   investment   climate hence   increasing the supply of goods and services in the economy.
5. Use of import and export policies. Policies   aimed   at restricting    the exportation    of scarce commodities    and importation    of commodities    which   are scarce   in the economy    should   be promoted.   This helps to increase on the availability   of commodities   in the economy.
6. Controlling the importation of goods   and raw materials from   countries   experiencing inflation.  This is done by the government   adopting import substitution   development    strategy   to produce commodities   formerly imported.    This helps to check on imported inflation.
7. Use of population control measures. This is aimed at reducing population   growth  rates  through the use  of appropriate   family  planning   methods.    This helps to check on excessive   demand.  For goods and services.
8. Construction of social and economic infrastructure.   For   example   construction     of roads, rehabilitation of production    units   etc.  This helps to facilitate   the distribution    of goods   and services from rural to urban areas hence controlling   inflation.
9. Reducing government borrowing from the central   bank for deficit   financing.   This   helps   to reduce excessive money supply in the economy.
10. Use of price control measures for example use of maximum price legislation, rationing   etc.  to check  on inflation.
11. Use of wage freeze policies. These are aimed at controlling wages of workers through the use of wage freeze and restraint.    This helps to check on the disposable   incomes   of individuals    hence reducing money supply and aggregate   demand.
12. Providing investment incentives. There is need   for  the  government    to  create   a  conducive investment   climate  by  providing   investment   incentives   to both  foreign   and  local   investors   in form of subsidization   and  granting  tax holidays.   This helps to increase production   of goods and services in the economy.
13. Use of currency reforms in case the level of inflation is very high. This helps to reduce money supply in the economy.
14. Use of privatization policy. This helps  the  private   individuals    to  get  involved   in  production hence  increasing  the supply  of goods  and services  in the economy
15. Liberalization of the economy. This allows for a number   of individuals    to get involved   in exchange  of goods  and services  with  limited  unnecessary   government   intervention

List form

• Reducing government expenditure
• Increasing direct taxes/increasing taxes on incomes
• Developing  infrastructure.
• Providing tax incentive s to investors
• Improving the political atmosphere
• Promoting the development of the industrial sector/undertaking import /substitution industrial strategy.
• Encouraging importation from cheaper sources.
• controlling issuance of currency
• Liberalizing the economy
• Modernizing the agriculture sector
• Controlling borrowing from the central bank
• Privatizing public enterprises