Inflation is an objective economic phenomenon, which can not be avoided, however, it can and must be fought.The depreciation of money and increasing the money supply - basically, the normal process is, however, a sharp jump in inflation could cause irreparable violations in the economic system.That is why the anti-inflationary policy of the state is one of the most important instruments of economic regulation.On the forms and methods of suppressing inflation will be discussed in this article.
anti-inflationary policy of the state includes an extensive set of measures related to the suppression of the depreciation of money.In essence, the inflation rate - a reduction in the value of money due to a substantial increase in money supply in circulation.There are two basic approaches to the selection and implementation of measures to reduce the rate of inflation: the monetarists are supporters of the so-called monetary control, in which the anti-inflationary policy of the state in the following ways:
1) the regulation of so-called discount rate of interest - that is, betinterest rate at which banks lend national release the money to commercial banks.Naturally, the change in the discount rate results in a similar change in the commercial rates.Thus, raising the discount rate, the central bank reduces the demand for money, presenting the commercial banks, and these in turn are forced to raise their rates, thereby reducing the population's demand for money.
2) Adjustment of reserve requirements - part of the assets of commercial banks, which must necessarily be stored in the so-called correspondent accounts of banks with the Central Bank.This method of regulation is similar to the interest rate adjustment, however, is somewhat less effective.
3) Transactions with the state securities - bonds, treasury bills and other - can be removed from circulation real money supply from circulation and replace it on less liquid government bonds.
In the view of Keynesian anti-inflationary policy of the state should be carried out by eliminating the budget deficit, which, in turn, must be made by adjusting the income, government spending and tax rates.This policy is called the budget and fiscal and involves the use of the following tools:
1) Reduction of state spending on the maintenance of socially disadvantaged groups - reduced the payment of pensions, unemployment benefits, privileges, and so on;
2) Increase tax rates, with the result that the state budget receives more money then to a lesser extent are issued.It is worth noting that the instruments of budgetary and fiscal policy should be used very carefully, because it is a very strong negative reaction from the population.
anti-inflationary policy in Russia is a set of techniques and monetary, budgetary and fiscal policies.Features of the Russian economy and the mentality of the population, have only recently ceased to live in a planned economy, the government puts the need to create a unique complex of measures to suppress inflation.One of the most interesting tricks, through which the anti-inflationary policy of the Russian Federation, is the creation of a stabilization fund, which on the one hand, to remove "harmful" to the economy of the money supply from the market, and on the other - makes it possible to accumulate huge financial resourcesRussia makes a weighty and respected player in the global financial market.
