In #26, we saw that government can (and does) take action to tackle inflation. But this is not all government can do. Backed by massive tax revenues and so substantial resources (huge money reserves and the power associated with that), governments have significant policy controls at their disposal which they manipulate as they see fit. Of course, juggling these is a very fine balancing act as they each objective can conflict with each other.
Heres the PDF PIIGSty Econ 101 #27 Economic Objectives of the Government