Galloping inflation

Types of inflation depends on what factors underlie their classification.

when the criteria are the predominant causes of inflation, its types are the following:

- production costs;

- demand.

One of the criteria may be the pace at which prices rise on the domestic market.In this case, allocate:

1) hyperinflation;

2) creeping;

3) galloping.

1. If prices rise more than 100 percent, say hyperinflation.It can happen in any country in a fundamental change in the economic structure.This is a temporary phenomenon.

2. Moderate inflation is typical for countries with developed economies.It is considered to be a stimulating factor even when prices rise each year by no more than 3-4 percent.

3. Galloping inflation takes place when the annual average price rise by at least 10-15 percent.Sometimes allowed their growth and up to 100 percent.Although not all economists believe inflation is a measurement of this type of boundary possible.Thus, Samuelson argued that the galloping inflation in the year may r

each 200 percent.

It is peculiar to developing countries.Sometimes, to determine the rapid inflation used another term - "abrupt."It can have various causes of the formation.Depending on the galloping inflation which is divided into a further three subspecies:

1) monetary;

2) demand;

3) costs.

They can manifest as together to form a system or separately.

Galloping inflation is a basic demand, rising.On its formation is affected by several factors.But the main thing is the rapid growth in demand, taken in the aggregate.And there he provided employment of all resources and the production of a certain size.Accompanied by galloping inflation is not physical, but nominal, ie the price increase in the volume of production in its entirety.In some cases, it may further increase.This occurs if the state resource prices rise easily and just as easily fall.This is especially true of wages, and hence the cost of labor.Production volumes in the galloping inflation may remain stable and fluctuate only short periods.As a result, their level is still recovered.Currently, manifest a type of inflation can only in Western Europe, and it is only at the stage of economic recovery.For Russia, where there are considerable fluctuations in production volumes, it is not typical.

The second type - a galloping inflation of costs.It is formed in such conditions, when rapidly rising prices for resources and at the same rate falling production volumes.Galloping inflation costs - is one of the main components of general inflation originating in Russia.It manifests itself during the economic downturn.

third type - monetary galloping inflation.In its development affects rapid depreciation of the monetary unit of the country.Inside it are two more subspecies:

- monetary galloping inflation that occurs when the volume of production and complete, and resources are all busy, ie during the economic recovery.For the present stage of development of Russia, it is not typical;

- monetary galloping inflation that occurs simultaneously with the jump inflation proposals.She is accompanied by a significant drop in output.

Russian economy in the late 20th century, it was inherent in the inflation rate.Vividly she was shown from 1993 to 1995.Then, in the next two years, it was crushed, but not yet fully overcome.

big role in its structure plays an element which is caused by the depreciation of the national currency, and the one that is due to the rising cost of resources.