Austerity policy is the traditional means to deal with inflation in various countries at present, and it is the most widely used and effective policy measure so far. Generally speaking, the tightening policy can be divided into tight monetary policy and tight fiscal policy.

1, tight monetary policy.

The reason for inflation is excessive money supply, so the central bank can reduce the inflation rate by reducing the money supply in circulation.

Open market business and increase market interest rate, the former reduces the stock in the economic system, while the latter urges customers to save and reduce consumer demand.

2. Tight fiscal policy.

Tightening fiscal policy mainly reduces aggregate demand by cutting fiscal expenditure and increasing taxes. The main measures are: reducing social investment expenditure and increasing tax revenue.

Preventive measures against high inflation:

1, to avoid money lying in the bank to sleep, that is, to reduce savings, you say that I save a current account, save a deposit, and never save it, which is tantamount to waiting for the money to depreciate.

2, is to increase investment, let money go out to make money, by obtaining more income, to offset the losses caused by inflation, such as funds, real estate, gold and so on. , preserve and increase value. Of course, investment is a technical activity, and friends who don't understand should learn the knowledge of reserve investment at any time to avoid the operation of bargain-hunting to the top of the mountain.