Fig.1. Money duality scheme

Functions of money : 1) measurement all economic benefits, as well as natural substances involved in the economy from nature; 2) mediation in the exchange of goods on the basis of the universality of the commodity-money; 3) establishment and redemption debts, debt relations; 4) escort economic acts in statics (creation of a firm) and in dynamics (advancement of values ​​in the chain of economic redistribution - from subject to subject); 5) fixing wealth, concluded in the objects of property and in accruals of income; 6) simple (non-capital) accumulation, saving- accumulation of mass for large one-time costs; 7) representation of the subject in the socio-political economy .. The latter is a generalized characteristic of the subject, showing the whole world his success in economic activity. The list of the richest people is published annually in the open press.

In part 1), 2), 4) the universality of money as a measure of objects and accompanying their movement is associated with the phenomenon of value from nature - with the involvement of a natural valueless substance in the economy. A mass wave of a product that has arrived from nature, when its value is formed in the economy, a corresponding amount of money is claimed. And only then, with the help of money, the current promotion of value is carried out along the redistributions of the economy - from owner to owner.

However, money are not a direct consumer good - they only give access to any good in the economy. Moreover, they are relatively independent of the values ​​in their separate movement. Such detachment, isolation creates the conditions for possible inconsistencies, inflation, crises.

Money can be represented in the coordinates "subjects-space-values" - see Fig.2.

Fig.2. Money in the coordinates "subjects-space-values"

Scheme_2 shows that all the values ​​contained in the economy and involved in it from nature are commensurable in money, that money serves the market, ensures the operation of business and overcomes the borders of states..

Types of money – planned and real. Planned money exists in financial plans - funds, budgets, reserves, as well as in accounting records, for example, when calculating earnings. Real money exists in two forms - cash and non-cash; the former are in the hands and at the cash desks of the subjects, and the latter are on the accounts of the subjects in banks. Planned money is always painted-distributed in private amounts in the cells of the tables financial plans.. Based on the formula of economic relations “ someone to whom, for what reason and how much ”, each amount in the financial plan shows the tension between the payer (source) and the recipient (budget). This tension, given by the plan, is removed by the movement real money during economic activity while executing the plan. Real money can be concentrated in one hand in any uneven amounts, and non-cash money can be concentrated in huge amounts on any bank account and in the shortest possible time. Wherein moving real money in space, from account to account and from bank to bank almost instantly and the whole amount at once, and not a penny, a ruble, a euro.. Money in real circulation exists in cash and non-cash forms. Cashless is a form of existence of money in computer memory cells, or in bank accounts. The owner can manage such money remotely - using bank electronic cards.

Final definition of money: universal economic entity in the unity of opposites - the measures of all values ​​and the carrier of energy in the economy; is revealed in functions - measuring benefits, mediation in the exchange of benefits, establishing and repaying debt relations, accompanying economic acts, fixing wealth, simple accumulation and representation of the subject in the socio-political economy.

The presence and movement of money in the economy gives rise to the problem of the amount of money supply that ensures the normal conduct of the national economy. The ratio of the value of natural goods and money raises questions of adding money to circulation, or emission, withdrawing them from circulation, as well as the issue of depreciation of money, or inflation.

money supply is a set of cash and non-cash money, means of payment that ensure the movement of goods, services, work in the national economy of the country. The amount of money needed for the normal operation of the economy can be calculated in many ways. According to one approach, this calculation is carried out on the basis of annual average statistical indicators relating to past periods, or for the future:

Dp \u003d (Stov.prod. – st.cr + From sq. – Svzp) / R.d, where (1)

Dp - the amount of money needed

Stov.prod - the amount of commodity sales (goods, works, services)

Stov.kr - the amount of commodity sales on credit

С pl - the amount of payments in fulfillment of obligations

Svzp - the amount of mutually repaying payments

Ob.d - the number of revolutions of money

According to another approach, the formula for the mass of money required for the normal operation of the economy: Dp = Dn + Dt - Ds, where (2)

Dp - the normal need of the economy for money

Dn - new money, demanded by the mass of natural substances involved in the economy and received a monetary value

Дт - money of the current economic turnover

Ds - "old" money, corresponding to a product-good that has retired from circulation for final consumption.

The need for cash is determined by the amount of earnings accrued for issuance to employees on hand. But at the same time, the non-cash turnover of payment transactions is expanding - using electronic cash credit cards.

Thus, the intrinsic value of money is deceptive- the value of money in the economy is related to the value of the product. Therefore, we can talk about different qualitative values money-currencies different countries. Indeed, if behind the American dollar or the British pound sterling, the European euro is worth the hard work of history, engineering, technology, technology, focus on consumer needs product , then the “field” of this currency, its purchasing power is much stronger than the ruble, behind which stands a product closer to “free nature” and less subjected to mental, engineering, technical and technological processing by living human energy, less focused on human needs - the last resort recognition of the value of the product.

To analyze quantitative changes cash flow, appeals use indicators of "monetary aggregates" - in Russia these are M0, M1, M2 and M3.

M0 - includes all cash in circulation - paper and monetary;

M1 - includes M0 + money in all bank accounts of a current nature + deposits of the population "on demand";

M2 - includes M1 + time deposits of the population;

M3 - includes M2 + deposit and savings certificates + government bonds.

Natural ratios are the excess of each subsequent monetary aggregate over the previous one.

Money supply and inflation. Money in the economy moves towards goods and services, works. However, with an increase in the mass of commodities and its value, the old money may be lacking. In addition, the expansion of the economic sphere gives rise to new needs for the capital development of nature, its involvement in the economy. These circumstances will require an additional mass of money.

Money emission is the issuance of additional money into circulation, which is undertaken due to various circumstances, and leads to an increase in the money supply in the economy. In accordance with the types of money, the issue of cash and non-cash money is undertaken. Issuing cash is a prerogative Central Bank, he decides on the timing and scale of the issue based on macroeconomic and technical analysis money circulation in the country.

The issue of non-cash money is carried out in the system of commercial banks, has the property of a “multiplier” and leads to the creation of additional “credit money” aimed at capital application. non-cash money at all levels of multiplication. If the project did not give the expected return, real values ​​were not created, then a “failure” is created in the monetary field of the economy, which leads to inflation - the depreciation of money, with which less and less real values ​​can be bought.

In addition, in the banking system, often in connection with the execution of financial plans that are not secured by real receipts, the phenomenon of generating money is manifested - namely bank money - with the dangerous possibility of exceeding the total money supply of those limits that are limited by the mass of commodities. In this case, there may be inflation effect, that is, the depreciation of money, since the value of the excess mass becomes fictitious. Banking system plays an important role in the processes of real money circulation - through its network, non-cash payments between economic entities. But in credit relations, money performs a special function (see below).

Inflation also has a natural basis - drying up natural resources, the extraction of which is relegated to hard-to-reach areas, is becoming more and more expensive. Such natural inflation throughout the world is estimated at 1-2% of the money supply. That is why money owners are looking for a profitable application of money that will support its value by increasing its amount in ownership.

money waves- the phenomenon of demand for money towards the waves of new natural values ​​arriving from nature, as well as movement through communication channels in the network of the banking system.

Money turnover can be considered on the basis of the movement of a product-commodity that begins its turnover in the economy as a raw material from a free, non-monetary nature - which requires a monetary value and monetary support from subject to subject, and ends it in unproductive consumption that does not require money. At the same time, money is released from accompanying the goods and can be opposed by a “wave” to new portions of natural resources involved in the economy - formula (2).

Usually in economics, the so-called " cash flows ”- an idea of ​​some “movement” of money through financial distribution channels .. However, such an idea is valid only for cash circulation, in which real banknotes, banknotes “move”, are transferred from one person to another. For non-cash payments, more precisely, not in-line, but wave the movement of money in the network of bank and accounting accounts. That is, missing per-ruble, sub-dollar overflow money from one place to another, but there is a wave movement - the movement of the entire money supply, as a rule, corresponding to the movement of the mass of tangible and intangible goods - in some equilibrium (taking into account commodity stocks and cash deposits outside circulation). As soon as natural material wave balance in the economy is violated - by the discrepancy between virtual money and the value of real goods produced, unaccounted for real money, arbitrary issue of money - corresponding crisis situations arise that destroy the economic system.

Emission- release into circulation Money and securities. The issue of funds is regulated by law and carried out by the state, which distributes this function between the central bank and the treasury. The central bank issues credit money - bank notes (banknotes). The Treasury issues treasury notes and change coins.

Depending on who issues money, there are two forms of issue:

budget is a release paper money, carried out by the Treasury at the request of the government of the country to cover budget expenditures. The issue of money is not due to the needs of trade and therefore leads to inflation. This money is not secured by anything and there is no mechanism for withdrawing it from circulation. Therefore, they are constantly depreciating, especially when trust in the Government falls. Paper money has the appearance of treasury notes.

credit - this is the issue of money carried out by the Central Bank in lending to the Government and commercial banks. When the loan is repaid, the corresponding amount is withdrawn from circulation, i.e. there is a mechanism for withdrawing credit money. Credit money is secured, because. when issuing a loan, the Central Bank requires collateral. Credit money has the form of banknotes if they exist in cash. They can exist in non-cash form.

Inflation - translated from Latin "inflation" means "swelling", associated with the excessive issuance of unsecured paper money into circulation.

For the first time inflation appeared in connection with the abolition of the gold standard. During that period, conditions were created for a constant and sharp rise in prices, as well as an increase in budget spending due to deficit financing, which contributed to the depreciation of money.

Modern inflation is associated not only with the depreciation of money as a result of rising prices, but also with the critical state of the economy as a whole. The main cause of inflation is a violation of the proportions between various sectors of the economy: accumulation and consumption, supply and demand, state revenues and expenditures, sources of loan capital and their use, the amount and money supply in circulation and the needs of the economy in money. Modern inflation is born in the reproductive process itself, but its concrete manifestation is found in the monetary sphere. At the same time, inflation that has arisen due to monetary factors is called demand-pull inflation, and not monetary - cost-push inflation.

To demand inflation could lead to an increase in military spending, a deficit state budget and the growth of domestic debt, the issuance of the national currency in excess of the needs of trade. To cost inflation- a decrease in the growth of labor productivity and a drop in production, an energy crisis associated with a sharp rise in the price of oil, rising prices and wages with slow productivity growth.

The main forms of stabilization of monetary circulation associated with inflationary processes are monetary reforms and anti-inflationary policy.

Monetary reform - this is a complete or partial transformation of the monetary system, carried out by the state in order to stabilize monetary circulation.

As an instrument of monetary reforms the state can use nullification, restoration, devaluation, denomination and shock therapy.

Nullification - declaration by the state of depreciated banknotes invalid.

Denomination - Enlargement of the scale of prices by "crossing out zeros" on banknotes.

Restoration is the restoration of the former gold content monetary unit.

Methods of "shock therapy" - were widely used in international practice during the transition from a state to a market economy. In "shock therapy" such harsh measures as freezing wages, reducing production, increasing unemployment, etc. are applied.

Anti-inflation policy - This is a set of measures for state regulation of the economy aimed at combating inflation.

Deflationary policy is a method of limiting money demand through monetary and tax mechanisms by reducing government spending, raising interest rates for loans, limiting the money supply. This policy is slowing down economic growth and even crises.

Emission- this is the release of money into circulation, which leads to a general increase in the money supply in circulation. Issue is cash and non-cash.

The government can increase the monetary base in two ways.

First, the state can "print money". At the same time, the state issues new bonds and sells them to the central bank, which pays for them by a corresponding increase in government deposits.

Secondly, the government can instruct the central bank to conduct operations on the open market, namely: to purchase bonds on behalf of the state from individuals or organizations.

Inflation is an increase in the general price level. This does not mean that all prices are necessarily raised. Even during periods of fairly rapid inflation, some prices may remain relatively stable while others fall. One of the main sore spots of inflation is that prices tend to rise very unevenly. Some bounce, others rise at a more moderate pace, and still others don't rise at all.

Inflation is measured using a price index. The price index determines their general level in relation to the base period.

Types of inflation(by pace):

1. creeping– no more than 10% per year

2. galloping– no more than 100% per year

3. Hyperinflation– more than 100% per year

Inflation control methods:

Group I - Species monetary reforms in the world:

1. Nullification- cancellation of the old (depreciated) monetary unit, in Germany after World War I, 1 trillion old marks were handed over for 1 new mark.

2. Restoration or revaluation- restoration of the former gold content of the monetary unit or (since 1976, when money was no longer exchanged for gold) an increase in the exchange rate of the national currency against foreign currencies.

3. Devaluation- (in the Russian Federation in 1998) this is a decrease in the gold content of the monetary unit or a decrease in the exchange rate of the nat. currencies in relation to foreign currencies.

4. Denomination– (three zeros crossed out in the Russian Federation in 1998) enlargement of the scale of prices, zeros crossed out.

Group II - Anti-inflationary policy:

1. Demand control for money- through an increase in taxes, an increase in the interest rate on loans.

2. Revenue regulation:

- Salary regulation- in the Russian Federation in 1992-95. only 4 sizes of the minimum wage were transferred to the cost of goods, more than 4 sizes of m.o.t. - taxes on profits

Inflation is caused by monetary and non-monetary factors:

1. Issue of cash.

2. State budget deficit.

3. Flight of capital abroad.

4. Dollarization of the economy.

5. Artificial lack of money.

6. Use of money surrogates.

7. The low exchange rate of the ruble, which stimulates the export of raw materials and energy.

8. Increase in production costs due to rising prices for raw materials and energy carriers, wages.

9. Inflation expectations.

10. Shadow economy.

Previous

Monetary inflation in the XVIII - AD. 20th century were episodic and were caused almost exclusively by a short-term departure from the metal (gold) standard and the release into circulation a large amount of paper money to pay military expenses during major wars. War-induced trade deficits due to the limited production of civilian goods played a significant role.

During and after the First World War, government budget deficits in the countries participating in the war caused increased money printing while contracting the production of consumer goods. As a result, in a number of countries hyperinflation.

Hyperinflation – is inflation (always monetary) with extremely high and fast accelerating pace. It is usually preceded by an inflationary spiral: rising prices Þ wage growth Þ rising prices...etc People lose confidence in money and turn to barter. There is a danger of the collapse of the economy, accompanied by social upheavals. Hyperinflation is a rare phenomenon, the causes of which are rooted not only in the economy, but also (primarily) in politics. It usually accompanies and is the result of such serious political upheavals as wars and revolutions. This is typical monetary inflation :

Excessive issue of paper money to cover government spending is combined with an acute shortage of goods and services.

However, inflation by its nature is not always monetary inflation. In the sense that the source of inflation is not always an increase in the money supply.

Non-monetary inflation - this is inflation, not due to the growth of the money supply.

From Lecture 3 on Analysis macroeconomic equilibrium(model AD - AS), it is known that there are demand inflation and cost inflation , and they are generated by various reasons, which is reflected in their name.

Demand inflation.

During the analysis of the AD-AS model, we found that demand inflation called excess aggregate demand. In other words,

demand-pull inflation occurs as a result of an increase in aggregate demand when potential real GDP.

In addition to the growth of the money supply, the growth of aggregate demand may be due to changes in other non-price factors of aggregate demand. These, as you know, include factors that determine the volume of planned expenditures for each of the four macroeconomic entities: consumer spending ( C), investment costs ( I), government spending ( G) and net export expenditures ( xn).

AD 3

AD 4

P

Y

Y*

AS

P4

P3

o If the growth of aggregate demand occurs at ascending(intermediate) segment of the aggregate supply curve (Fig. 9.2) so that the curve AD 2 move into position AD 3, that is, the equilibrium will go to the boundary ascending and classical segments, the price level will rise from P2 before R 3. Real GDP will increase, reaching the potential level Y*. Unemployment will fall and reach a natural level.

An increase in the price level on an upward segment until reaching the potential GDP (Y*) is called premature inflation.

This name is explained by the fact that an increase in the price level is accompanied by an increase in output. (Keynes called such inflation "semi-inflation").

o As soon as aggregate demand exceeds AD 3, he will become excess aggregate demand , then it will start true demand inflation(Fig. 9.3). It happens on classical(vertical) segment of the aggregate supply curve.

Let us consider how, in connection with the growth of aggregate demand, the values ​​of nominal and real GDP.

· On the horizontal segment: the price level is unchanged (P = const), therefore, nominal and real GDP grow at the same rate, since there is no inflation and no change in the nominal GDP reflect only changes in real GDP.

· On the intermediate segment nominal GDP growing faster real GDP , since the growth of the nominal GDP reflects the growth of real GDP, and an increase in the price level (inflation)

· On the vertical segment takes place true (pure)) demand inflation, since the growth of the nominal GDP reflects only an increase in the price level, and the real GDP remains unchanged.

Thus ,

source and cause true demand inflation is an excess aggregate demand .

cost inflation

cost inflation arises as a result of a negative aggregate supply shock that raises average costs in the economy as a whole (Lecture 3). This results in a shift in the aggregate supply curve. to the left and up.

Often cost-push inflation occurs as a result of rising resource prices. Faced with rising costs (due to rising resource prices), manufacturers charge higher prices for their products in an attempt to compensate for increased costs by inflating prices in order to maintain profits.

Rice. 9.4

In Figure 9.4 we see how rising costs shift the aggregate supply curve AS 1 left to position AS 2. The price level rises from R 1 before R 2, real GDP reduced from Y 1 before Y2, therefore, employment is reduced - begins stagflation - a situation in which a low level of real GDP and a high level of unemployment is combined with an increase in the price level (inflation).

The main sources of cost-push inflation are:

1. An increase in nominal wages (as a rule, due to a change in the minimum wage rate in the legislative order), not supported by a corresponding increase in labor productivity.

2. an increase in prices for energy and raw materials (either due to a reduction in the supply of these resources on the market, or as a result of the action of cartels, or due to a fall exchange rate currency of the country, which leads to a rise in the cost of imported resources).

In reality, it can be difficult to distinguish demand inflation and cost inflation . However, it is generally accepted that demand-pull inflation continues as long as there is excess aggregate demand. Cost inflation automatically limits itself, reducing the demand for resources, and gradually disappears (however, the problem of increasing real output and employment remains).

Socio-economic consequences of inflation. inflation and real income. The impact of inflation on the redistribution of income and wealth. Influence of inflation on the volume of national production.

If we talk about fully expected, predictable inflation, then economic agents as a whole can adapt to it. For example, if it is known that the price level will rise by 5% next year, then workers will demand an increase in nominal wage rates by the same 5%. All entrepreneurs will increase their prices by 5%. Banks will increase their rates by 5%. However, fully predictable inflation is possible only theoretically. In practice, economic agents are faced with unexpected inflation. And the rise in prices does not occur evenly: prices for some goods rise faster, for others slower, for some goods prices may decrease. As a rule, nominal wage rates rise last.

One of the most serious consequences of such inflation is redistribution of income. As noted above, inflation purchasing power money, so many believe that the whole society suffers from inflation. To find out if this is actually the case, it is necessary to analyze how they are interconnected: inflation, nominal (disposable) income and real(disposable) income.

Nominal income is the amount of money that households receive for factors of production.

Real income represents the amount of goods and services that can be bought with this nominal income.

In other words, based on the relationship between nominal and real variables formulated in Lecture 2,

REAL INCOME IS NOMINAL INCOME DIVIDED BY THE PRICE LEVEL:

Y= 100%

If known inflation rate, as well as change nominal income in percent(= growth rate of nominal income), then

Δ (in %) Y = Δ . (in %) PY- p,

where Y- real income

PY- nominal income,

p- rate (level) of inflation.

In terms of inflation real income:

· decrease in case if nominal income grows at a rate that is lower than the rate of inflation ;

· Will not change , if nominal income grows at the same rate as inflation;

· will increase , if nominal income rises faster than inflation.

Thus, not everyone suffers from inflation.

suffer:

Ø fixed nominal income recipients(state employees, pensioners, recipients of allowances, scholarships, etc.),

Ø savers and creditors.

win:

ü entrepreneurs whose prices for finished products rise faster than prices for inputs,

ü debtors,

ü government that pays its debts with depreciated money.

In other words,

inflation "taxes" those who receive fixed cash incomes and "subsidizes" those whose cash incomes grow faster than inflation.

The result is a redistribution of income and wealth..

The impact of inflation on the volume of national production (real GDP) and employment may be different.

v Some demand-pull inflation accompanies growth real GDP and reducing unemployment ( premature inflation on the upside of the aggregate supply curve).

Therefore, there is an opinion that in order to "push" the recovery of the economy after an economic downturn, you can unwind a small controlled inflation. This is a dangerous and unproductive position:

1. Inflation can get out of control at any moment.

2. This opinion is based on a misunderstanding of the causal relationship between the growth of production (reduction of unemployment) and the rise in the price level (this was emphasized by J. M. Keynes, who is credited with authoring such an interpretation of inflation).

v With true demand inflation real GDP does not change , remains at the potential level, in the economy - full employment.

v If inflation is driven by rising costs, then real GDP shrinks, unemployment rises.

v Hyperinflation (that is, extremely high and rising rates of inflation) has a devastating effect on national output and employment. It is usually preceded by an inflationary spiral (wage-price spiral): for example, an initial increase in the prices of goods and services due to rising raw material prices may lead to demands from unions for higher money wages. If these requirements are met, increased wage costs will push producers to raise the prices of final goods and services, and so on.

Hyperinflation leads to a situation in which people lose confidence in money and turn to barter. In this case, there is a great danger of the collapse of the economy and serious social upheavals.

Hyperinflation is rare. Its causes lie both in economics and in politics, for example, when there is an excess issue of money to cover government spending during a war, or an acute shortage of goods and services, combined with suppressed demand, as is usually the case in the early post-war years.

. Inflation (lat. inflation - inflation) - the process of increasing the general level of prices in the country due to violation of the law of monetary circulation. Inflation occurs when there is an excess amount of money (cash and non-cash) in circulation. Yes, the situation leads to their depreciation, money "cheaper", and prices tend to rise. Therefore, the most important indicator of inflation is the dynamics of the price index.

Inflation as a phenomenon arose simultaneously with the appearance of paper money, because with gold circulation, as it turned out above, there can be no excess money in circulation. Distinguish between "classical" and modern inflation

Classical inflation (XVIII-XIX centuries) is characterized by its temporary . It arose under extraordinary circumstances (long wars that increased state spending, etc.) . Modern inflation has a chronic (permanent) character. It has become a permanent element of the reproduction process. The demonetization of gold, the rupture of ties between paper, credit, check money and gold provided the impetus for December, a mass of autonomous nature, relatively independent of the circulation of goods, their supply.

The cause of inflation was first considered the widespread transition to paper money. However, even after the issue of money was taken under strict control, inflation did not disappear. It turned out that there could be different reasons for inflation, and it itself can be different. Distinguish between demand-pull inflation and cost-push inflation.

With demand inflation, there is an increase in the money incomes of enterprises, the state and households. Demand in the country as a whole is greater than the total supply of goods and services, and this inevitably leads to an increase in the level of etin.

No less dangerous is cost inflation, when prices rise due to an increase in costs when buying the necessary production resources, again pushes prices "up" where these resources are used inflationary or price jumps reinforce each other as a result, their growth becomes, in fact, self-sustaining, and with growing stages.

The two most important sources of cost-push inflation are this rise in nominal wages and prices for raw materials and energy

Excessive growth of wages, as a rule, gives rise to inflation, therefore, trade unions, demanding a constant increase in wages for workers in their industry, must take into account the general economic state of the country, the average level of wages. The rise in production costs, revolving around "winding up" prices, leading to a sudden, unpredictable rise in prices for raw materials and os poured on energy, was fully felt by the economy of the young independent Ukrainian. Ukraine.

The worst thing about cost-push inflation is that it breeds inflationary psychology. This phenomenon occurs when there is confidence in the mass consciousness of people that inflation will increase, etc. for raw materials, energy, labor and credit.

. inflation rate measured using the inflation rate indicator (see Chapter 12. Loan interest and its rate)

According to the level, inflation is distinguished "creeping" (up to 10% per year), "galloping" (more than 10% per year) and hyperinflation (over 2000% per year or 50% per month or 1-2% per day)

Any inflation leads to higher prices. At the same time, the rate of wage growth, as a rule, lags behind the rate of price growth. Therefore, the consequence of inflation is the deterioration of the welfare of the population. But hyperinflation is especially dangerous.

. Hyperinflation reveals a devastating impact on the country's economy and leads to the rapid impoverishment of the people and the growth of unemployment. The real incomes of people are rapidly decreasing, savings are practically destroyed. Businesses that cannot bear the burden of rapidly rising costs are closing down. The mechanism of saving money for productive investments is destroyed, because in such conditions it is profitable to be a debtor (“the cost of debt is rapidly decreasing”) and it is unprofitable to lend and accumulate money. Banks do not provide loans, and if they do, then for a short time (several months) and at extortionate interest. As a result, production and trade are destroyed, the country "eats away" its future, destroying the basis for the normal growth of the economic growth of the economy.

Ukraine in 1993 slid into the abyss of hyperinflation, from which it was extremely difficult to get out. And in the new one. Yugoslavia (Serbia and. Montenegro), the inflation rate has reached a fantastic border - several million. The percentage of rebound on the rivers.

. Structural inflation caused by macroeconomic intersectoral imbalance, which leads to chronic unsatisfied demand for the products of individual industries and causes a rise in prices

Along with the forms, it is necessary to highlight and type inflation. There are two types of inflation: open and hidden.

. open inflation unfolds in markets where there is free pricing. It is carried out in the form of inflation of demand and inflation of costs, and although it deforms the market by uneven price increases, it does not completely destroy the market pricing mechanism.

underhand inflation arises from state regulation prices by blocking ("freezing") them. It is caused by the wrong actions of state bodies, which are struggling not with the market deformation, but with its consequences - an increase in prices. Therefore, the causes of inflation persist, it becomes hidden hidden.

hidden inflation destroys the market mechanism. The market does not perform a regulatory function, because it does not receive price signals (price changes are the main leverage market mechanism). Frozen prices make it unprofitable for him to invest capital and other resources in industries where production costs are high. From such industries is the "flight" of capital, generates a shortage of certain goods. In a self-regulating economy, scarcity (lack of goods) is quickly eliminated by higher prices, and then by the expansion of production. Here, the deficit becomes chronic, hidden inflation gives rise to rush demand and a shortage of goods. Daedalus and increases. Total commodity deficit - a sign of hidden inflation, its inevitable companion becomes a companion of the flock black market (illegal). Production does not work or works slowly, incomes decrease, the population and the state become poorer

The advantage of open inflation compared to hidden inflation lies in the fact that in the first case, the manufacturer receives additional income from rising prices, and in the second, criminal structures “thrive” on the black market.

So, the culprit of inflation in any case is state whose inept and wrong actions predetermine the existence of a surplus of money in circulation and a general rise in prices. Especially it concerns emission inflation

. Issue inflation arises as a result of the unjustified release by the state into circulation of additional cash or non-cash money, which is not supported by an additional release of commodity mass

Whatever the limit of additional emission - ensuring the payment of wages, pensions, social assistance, etc. - it will result in rising prices, inflation, impoverishment of the people. Therefore, any monetary emission must be reasonable and balanced, provided with additional goods and services.

So, an excess of money in circulation is harmful to the country, because it leads to inflation, but a shortage of money in circulation or deflation

. Deflation leads to a crisis of overproduction the lack of money gives rise to a decrease in aggregate demand, which again threatens to reduce the scale of production, unemployment, a decrease in the well-being of the population, etc.

The state is responsible for both inflation and deflation, because it is it that issues money, therefore it must take into account the operation of the law of monetary circulation. The modern market state is characterized by anti-inflationary policy

In order to overcome inflation, the state is implementing a whole range of measures in the sphere of production, finance, money circulation and credit, wages, employment, international credit and currency relations. Osin. At the same time, various forms and methods of regulation are used - budgetary, tax, monetary, currency, price etc.

Particular activity of the state in the field of anti-inflationary regulation is observed in countries with a developed market system. Since the late 70s of the last century, landmarks have changed economic policy. From the Keynesian anti-cyclical inflationary model of macroeconomics, there was a transition to the monetarist anti-inflationary model.