1. Monetary measures: Monetary measures are used by the government in order to neutralize inflationary pressure. In Bangladesh, it is implemented by Bangladesh Bank. Main tools of monetary measures of credit control include Bank Rate policy, Open Market Operations, Cash Reserve Ratio. These measures are used to achieve full employment, to maintain a fairly stable exchange rate, to achieve rapid economic growth and promote economic equality.
2. Fiscal measures: Fiscal measures relates to public revenue and public expenditure and matters
related thereto. Important tools of fiscal measures are Public revenue and
Public expenditure. The major sources from where public revenue is generated
include income tax, wealth tax, excise duty and sales tax. Public expenditure
refers to the expenditure by the government on productive as well as
non-productive activities. Productive expenditure includes expenditure on
infrastructure development, development of industries like iron and steel,
chemicals, heavy engineering, etc. Non-development expenditure includes
expenditure on administrative machinery, law and order, defences, etc.
3. Other measures:
These may be short term or long term. Short term concerns with the distribution
of essential commodities on ration cards at reasonable price. Long term includes
population and economic planning. Population planning is used to aware the
people about family planning. Economic planning is used to accelerate the
economic growth and development of country.