Supply Side Policies:

In addition to the demand management policies, supply side policies could also be used in controlling inflation. This however is a long-term measure. The following may increase aggregate supply. Increasing productivity in all sectors of the economy. Increases in productivity may increase output, which will subsequently increase supply. This may be achieved by the retraining of labour, improving technology, removing all structural rigidities e.g. land tenure system, poor road infrastructure e.t.c.