economy and develop for a long time and having a flexible prices, always accompanied by inflation, the essence, the reasons for which different directions interpret differently.This is one of the biggest challenges in virtually all countries of the world.While some scientists and argue that economic situation only comes alive thanks to the low level of inflation, yet it is impossible not to note its detrimental effect on the distortion of information on prices.Because of her decision, even on the rules adopted and to reflect new information, are becoming less effective.
Socio-economic effects of inflation are very deep.Around the world, perhaps, can not find a country that would not "ill" this serious disease.
Thus, the socio-economic effects of inflation are as follows.
1. It destroys the usual economic ties.The economy intensified confusion and imbalances.Undermines investment process, since the uncontrollable price increase profit, is the goal of production, can be obtained without its extension.
2. Next, the socio-economic effects of inflation are aggravated even more.Since production in the same volume no one needs, the capital of this area moving into a turn.First of all, it is the commercial structures, "scrolling" through which the money much faster bring huge profits.At the same time the process of capital in search of more profitable use, and guaranteed income moved abroad.Thus, society is gradually increased corruption, speculation, there is the shadow economy.
3. Socio-economic effects of inflation and the impact on the functioning of the monetary system.Banknotes impaired, people lose the incentive to their accumulation.And entrepreneurs, and ordinary citizens prefer to invest in real estate and the acquisition of various goods.Credit also has to break the contract, as in the new conditions of their unprofitable to give a little interest in the long term.In this case, the debt will be refunded the money that already have time to depreciate.
4. Also, inflation does not contribute to the development of foreign economic relations of the country.Domestic products are losing competitiveness, they are difficult to export.But the import of goods, on the contrary, increased, as in the domestic market, they have higher rates.Inflation hinders flow of foreign capital into the country.The depreciation of the national currency leads to a decrease in its market and the official exchange rate.
5. Inflation leads to a drop in the living standards of the population.This is especially true of those who had previously had a stable income, since its growth rate did not keep pace with rising prices for goods and services.
6. Inflation devalues those monetary savings that people had once invested in banks, insurance policies.The same happens with other paper assets, which have a fixed cost.
7. Inflation increases unemployment.In a society growing social tensions.The population is losing the motivation to work effectively.
All the above economic and social impact of inflation and the impact of how to behave market actors.Most likely, they will lose confidence and to each other and to the state.This, in turn, will increase and economic instability in society.
To fight the effects listed in the state carried out anti-inflationary policy.This is a complex and long-term measures of short-term.The first aimed at reducing the existing inflation rate, and the second - the fact, in order to prevent it from happening in the future.
