Inflation - is the process of loss of purchasing power of their money

enacted in conditions of the global crisis began to sound very often incomprehensible for many people, the term "inflation".This can only mean that the concept has a direct relation to the current state of the global economy.The term was first used in North America in the sixties of the XIX century.It denotes the process by which it is necessary to increase the emission of paper money.After application of the term by the Americans, he migrated to Europe, where he found its application in the characterization of the economic processes taking place in France and the UK.However, in the specialized literature, this concept became widely used only in the early twentieth century.

Virtually every textbook can be found the following interpretation of the term: inflation - is the process of reducing the cost of money (of depreciation).At the same time the reason that caused this phenomenon is called an excessive amount of money that is in circulation, and is not covered by any benefits.The characteristic results of pursuing this process, no doubt, include a rise in prices for goods and services, accelerated growth rate of unsatisfied demand, and so on. N. In this case, all the channels of circulation of money overflowing paper banknotes excess weight, and the amount of manufactured goods does not increase.

Issue currency in an economic downturn may be the cause of the phenomenon of inflation.Determination of the process may have several options, the meaning of which boils down to one thing: the depreciation of the money supply and rapid price increases.At the same time to paper payment instruments have retained their value, they must be reinforced gold reserves of the issuing country.In fact, it happens not always.Therefore, there is an imbalance between the value of cash and cash amount.

Inflation - is negatively perceived in the world process that is able to destroy even well-established and stable economy.Moreover, if its growth rate of 6% is still possible to turn even in a positive way, then stepped the mark of 10% of this economic phenomenon carries harmful and sometimes even devastating for any country.

inflation factors having a direct influence on it, are divided into external and internal.The latter category includes cash and, accordingly, non-monetary reasons.By monetary factors include the budget deficit, the continuous growth of the domestic state debt and others.As mentioned above, plays an important role improper issue of paper payment instruments.For non-monetary factors include the emergence of the credit expansion, the imbalance in the production process of monopolization and others.

External causes are due to the situation in the world economy.These include structural crises - raw materials, energy and others, as well as illegal the export of gold and so on. D.

Inflation - is the process of falling purchasing power of money, which can be subdivided into categories depending on the pace, ways of appearance and formmanifestations.