【正确答案】As there are different causes of inflation, the counter-measures of controlling inflation are varied. These counter-measures focus mainly on such aspects as demand, supply, and structure and so on. 　　1. Policies Concerning Demand Controlling 　　Policies in this regard refer to that a national government changes the general expenditures by using fiscal and monetary policies in order to control inflation. The policies in this aspect are applied to deal with non-expected and demand-pull inflation. As demand-pull inflation is caused by money supply over money demand, policies concerned demand controlling are aimed at regulating the general money supply of the whole society. 　　(1) Tight monetary policy 　　Tight monetary policy means that a central bank carries out the policy of squeezing money, i. e., to raise purchasing power of money by reducing the quantity of money in circulation. The concrete measures are as follows; 　　A. Raising the discount rate and lending rate for the purpose of increasing market interest rates. When a central bank raises the discount rate and lending rate, the discount rate and lending rate of commercial banks will first be affected, then other interest rates in financial markets, which make people save more money, and cut down their consumption demand, push up investment cost and curtail investment demand. In some countries where there is a interest rate control, the central bank can directly raise deposit and lending rates to squeeze credit (reduction of business investment) and absorb savings (reduction of household consumption). 　　B. Selling government securities in the open market to push up interest rates indirectly. Through the central bank’s open market operations, a central bank can decrease the quantity of money in circulation by selling government securities so that the prices of government securities will fall and market interest rates will rise which will curtail investment and consumption. This method is widely used in western countries. 　　C. Raising the required reserve ratio. Raising the required reserve ratio reduces funds commercial banks can loan and weakens commercial banks’ money creation ability so that money supply can decrease. 　　(2) Tight fiscal policy 　　Tight fiscal policy includes the increase of tax and reduction of government spending. On one hand, the source of funds used by businesses and households on investment and consumption can be reduced through increasing tax and cutting down transfer payment; on the other hand, government expenditures can be reduced by decreasing fiscal deficits and government procurement. Consumption, investment and government spending are the main parts of the aggregate demand. As there is a lack or a time lag of people’s anticipation of decreasing aggregate demand and the aggregate supply curve won’t move down immediately with the aggregate demand curve or the aggregate supply won’t decrease right away, tight fiscal policy will result in the increase of unemployment and the fall of output, further economic depression in the short run. 　　2. Income Policy 　　Based on the cost-push inflation, economists have created the theory of income policy which refers to that governments restrict wage hikes in order to control price increase. As wage increase will push up cost and further inflation rate, compulsory and non-compulsory means are adopted to restrict wage hikes. Income policy includes the following aspects: 　　(1) Wage-price control 　　It means that a national government forces to fix the range of wage and price increase and even imposes wage and price freezes. These measures affect an economy greatly, but they are seldom used unless there is hyperinflation being caused by war. 　　(2) Wage-price guideline 　　This means that a national government determines the standard of wage and price rise according to the average growth rate of productivity and requires that each sector of the national economy keep the wage and price rise within the standard. But this policy is applied voluntarily, not by force or by law, because the effect of it is not so obvious. 　　(3) The tax-based income policy 　　This is a policy used as penalty for those businesses whose rate of wage rise exceeds the limit of wage rise set by the government. The government penalizes such businesses by imposing higher taxes on them in order to restrict wage rise. 　　3. Income-Indexation Policy 　　Income-indexation refers to that wage, interest, earning of bonds and other income are linked with price index so that they can be adjusted with changes of price level. Not only wage, but also social security payment, interest rate and tax rate can be indexed so that the harm done by inflation in an economy can be reduced. This policy is aimed at protecting the interest of different interest groups and overcoming the unfairness of distribution caused by inflation without lowering households’ real living standards. 　　Income-indexation, especially, wage-indexation is popular in the developed countries. Some economists hold that income-indexation policy will weaken governments’ intention of applying inflationary policy. Under the condition of income-indexation, the burden of the national government as net debtor will become heavier; the government can benefit less from inflation. But income-indexation can mitigate the unfair redistribution of income caused by inflation and eliminate distortion of distribution of income. 　　4. Supply Policy 　　To develop economy and increase effective supply of goods and services is the fundamental measure to curb inflation. The effective supply can be increased through the following channels; 　　(1) To adjust industrial structure and perfect a variety of consumption goods 　　A national government should give priority to certain industries, support the development of such industries as communication, environment protection, education and tourism and so on, so that limited financial resources and materials can be put into important industries and key products in order to increase social and economic efficiency. Through industrial adjustment the variety of consumption goods can be improved so that supply and demand can be met. 　　(2) Expand range of supply and take in money in the market 　　It should be pointed out that people can be over anxious for quick results of harnessing inflation with non-discretionary implementation. The key is that the degree to which tight monetary and fiscal policies are carried out should be controlled properly. Otherwise, things will turn out conversely, deflation will occur.