To control inflation, the central bank of a country may adopt

To control inflation, the central bank of a country may adopt a restrictive monetary policy. This involves the reduction of the money supply in the economy, which in turn increases interest rates, making borrowing more expensive. This makes it more difficult for businesses and consumers to borrow money, reducing the demand for goods and services, which in turn reduces the upward pressure on prices. By increasing the cost of borrowing, the central bank can reduce spending and investment, and limit the amount of money in circulation, thus controlling inflation.