Conventional economics, reflected for example in the IMF Occasional Paper “Monetary policy implementation at different stages of market development”, 3 recommends that monetary policy is the tool that should be used to target inflation. How does that work in practice? Say the inflation forecast is 8 percent, and that policy makers, considering this unacceptably high, choose an inflation target of 5 percent maximum.
Conventional economics would recommend that the central bank buy treasury bills, with an expectation that the interest rate yield curve will rise over its entire range, the supply of money will decline, aggregate expenditure will contract, and therefore expected inflation will fall. In practice the central banker needs more precise information.