Inflation - is what each of us knows firsthand.In a market economy it has become a permanent phenomenon in any country.Types of inflation depend on the reasons why it occurs.But it is always a serious problem for the country and the government.Therefore, we analyze the nature of inflation and the factors that cause it.
First, some terminology.Inflation - is the depreciation of money, for which there is a rise in prices for goods and services.It is important to note that a rise in price of goods is not due to an increase in their quality.
can say that inflation is the nature and types of depreciation is the presence of a large amount of money in circulation with a smaller number of commodity values, which can be purchased.
But not all inflation brings only trouble.It is beneficial for those who have to repay the debt.The refund amount will be less valuable if was taken without interest.State paying social benefits and not counting them due to inflation, also remained in profit.Another category, which the price increases and the depreciation of money is beneficial, is an exporter.
Kinds and types of inflation are as follows.
Inflation created artificially (ie, there was an increase in prices, which can be controlled), called administrative.
Sometimes there is a sharp increase in commodity prices.This can happen many times and is known as galloping inflation.
If there is too much depreciation of money and, consequently, higher prices for goods and services, the event is called hyperinflation.This is a very negative manifestation which affects the entire economy, and especially on the prosperity of its citizens.
Built-in inflation is more balanced character.It is characterized by a gradual and not a very large price rise for any particular period.
This process can affect any particular factor or a part of the production cycle.Inflation costs are characterized by an increase in prices for raw materials and other production factors.As a result, increasing the cost of production and services.The natural reaction to such an event is to increase the price of the final product.
inflation rate in one country is inextricably linked to the global economy.Types of inflation is almost always related to any events outside the state.In this case, there is imported inflation.Its appearance is due to the large amount of foreign capital that enters the country or with an increase in prices for imported goods.
influence on the economy and external environmental factors.If this is accompanied by a rise in prices, there is induced inflation.
As a result, a large credit expansion takes credit inflation.
Typically, many types of inflation can be predicted.But if the growth rate was much higher than expected, then this case is called unexpected inflation.Accordingly, if the inflation rate were within the forecast, it is known as expected.
very common cause of inflation is the increase in the prices of goods and materials.In this case it is called open.
If the deficit of the goods takes place artificial cost containment by the state, it starts hidden inflation.The goods disappear from a free sale and appear on the black market at inflated prices.
gradual increase in prices over time is characteristic of creeping inflation.
Finally, the excess of demand over supply, and as a result, the rising cost of goods and services leads to inflation of demand.
Thus, all types of inflation are characterized by higher prices and the depreciation of the money supply.They occur for various reasons, and affect the economy in varying degrees.
