When inflation, the national fiscal and monetary policies to curb inflation generally include:

1, increase the bank deposit reserve ratio;

2. Raise the deposit and loan interest rate;

3. Reduce currency circulation;

4, the implementation of "tightening" fiscal policy (that is, there is a budget surplus);

5. Raise the tax rate;

6. Increase the bank's "directional notes";

7. Reduce the loan amount;

8, reduce the amount of government financial bidding, etc.

In the period of inflation, austerity policies are generally adopted, and fiscal policies mainly include increasing taxes, reducing government purchases and investments, and reducing transfer payments. Monetary policy mainly includes raising the rediscount rate, raising the statutory reserve ratio and the central bank selling government bonds. Due to various reasons, inflation is quietly coming to our country. In order to avoid the abnormal development of China's economy, we must adjust our income policy, monetary policy and foreign economic policy to improve it. Inflation Monetary Policy Fiscal Policy According to the principle of "adjustment against the wind", theoretically we should adopt a tight fiscal policy and monetary policy, but in fact, the economic situation is complex and changeable, and there are many reasons for inflation, so everything is subject to the national announcement. For example, China has adopted a proactive fiscal policy and a prudent monetary policy. Inflation refers to a comprehensive and sustained price increase in economic operation. The circulation of paper money exceeds the actual amount of money needed in circulation, which is one of the main reasons leading to inflation. In order to curb the price increase, we should implement tight fiscal policies at this time, such as reducing fiscal expenditure, increasing taxes, curbing aggregate demand and reducing inflation rate. Monetary policy is to reduce currency circulation and raise deposit and loan interest rates.

The operation of fiscal policy:

In the period of economic expansion, tax revenue automatically increases in time, and transfer payments such as unemployment insurance, poverty relief and product price support decrease, which helps to curb inflation;

During the economic recession, controlling deflation is the primary task of fiscal policy. The increasing deflation has seriously affected the normal development of China's economy. We should take controlling deflation as the main task of macro-control and put forward corresponding measures.

Legal basis: Constitution of People's Republic of China (PRC).

Article 6 People's Republic of China (PRC)'s socialist economic system is based on socialist public ownership of the means of production, that is, ownership by the whole people and collective ownership by the working people. Socialist public ownership eliminates the system of exploitation by man, and implements the principle of distribution according to work and distribution from each according to his ability. In the primary stage of socialism, the state adheres to the basic economic system with public ownership as the main body and multiple ownership economies developing together, and the distribution system with distribution according to work as the main body and multiple modes of distribution coexisting.

Article 15 The state practices a socialist market economy. The state strengthens economic legislation and improves macro-control. The state prohibits any organization or individual from disturbing social and economic order according to law.