Experts suggest that which policy can help control inflation?

Monetary policy is a critical tool used by central banks to control inflation. It involves managing the money supply and interest rates to influence economic activity. When inflation is high, a central bank may choose to increase interest rates. Higher interest rates make borrowing more expensive and saving more attractive, which can reduce consumer spending and business investments, ultimately leading to lower demand for goods and services. This decrease in demand can help to bring inflation under control.

By adjusting the money supply through various mechanisms, such as open market operations, reserve requirements, and discount rates, monetary policy directly impacts inflation and overall economic stability. Thus, it is widely recognized as an effective means of managing inflationary pressures within an economy.

While fiscal policy, which involves government spending and taxation, can also influence inflation, its effects are often slower to materialize compared to the more immediate impacts of monetary policy. Balance of payment and exchange rate management can also contribute to overall economic stability but are not primarily focused on inflation control in the same way monetary policy is.