c) Administrative Measures:

These measures are implemented by the administrative agencies. Since, both monetary policy and fiscal policy have their inherent limitations and operate with a lag, therefore, it is important for the government to take certain administrative measures to curb down inflation. Some of administrative measures are discussed below:

(i) Banning of exports of certain items such as edible oils, onions and pulses.

(ii) Imposing a temporary ban on trading on futures in some of the essential commodities.

(iii) The government can also work towards strengthening of the PDS to reduce leakages, the Chhattisgarh PDS model is a perfect example of how government can reform the PDS and significantly affect the price levels in the market and at fair price shops

(iv) Government also needs to ensure raiding of the warehouse of essential commodities to dig out the hoarded stocks with the hoarders.

These measures also have their own limitations in that they can curb inflation only on short term basis. They do not have significant effect on checking the demand-pull or cost-push inflation. These steps are taken to provide immediate respite to the people.

Therefore, for effective control a combination of these measures is adopted. One of which is the policy of Inflation Targeting, which would be discussed later in this document.