Whether inflation is caused by demand or supply has very important implications for monetary policy making. Theoretically, in response to demand-driven inflation, policy tightening is desirable to reduce excess demand and contain inflation. In response to supply-driven inflation, central banks' decision making faces the difficult dilemma between considerations of economic activity and the need to tackle surging inflation.
As such, a lot of countries provide preferential policies, such as capital infusion in development financial institutions, guarantee, tax holiday, interest subsidy, etc.