Inflation - is a process characterized by the constant rise in prices.As a result, his money starts to depreciate in relation to assets.Inflation depends on several factors.But it must be remembered that not every change in value is she.
consider in detail what inflation and its species.This process manifests itself as a stable phenomenon.The market can be seen rising prices or time jumps.In the first case, it just comes to inflation, and the second on seasonal changes in value.
When inflation increases the overall price index, rather than the value of all goods in general.At some point in time some items can go up other cheaper, while others remain at the same level.But at the same time if the overall index, that is, the GDP deflator shows growth, then we are talking about inflation.In economics, there is the concept of "deflation" - when there is a decrease in the price level.
So, we continue to consider what inflation and its species.This economic process leads to the fact that the purchasing power of money decreases dramatically.People with time on the same amount can buy fewer units sold.
Concept and types of inflation - one of the main topics in economic theory.It considers that the classification process.Because of the inflation rate is divided into moderate, galloping, high and hyperinflation.We examine each of these in detail.
Moderate inflation is characteristic of the modern economy.It occurs in most parts of the world.Moderate inflation is a slight increase in the price level in a year.Its value is an average of 3-5%.The maximum allowable height - 10%.This type of inflation is an incentive to expand output.
continue to learn, that is inflation and its species.Galloping as measured by percent in one year.But, in contrast to the moderate inflation, it is expressed in the double digits, and is a serious problem for the economies of developed countries.
High inflation expressed interest per month.In the same year, it is quite a large growth rate.The figures may exceed 200%.This type of inflation can be observed in the countries with economies in transition and developing countries.
Hyperinflation has huge growth rates.It measures the percentage of the day or week.For a month rise in prices could be 50%, and in the year go up to 1000%.In history there are such vivid cases of hyperinflation.Germany, January 1922 - December 1924 The increase in prices amounted to 1012%.Hungary in August 1945 - July 1946 suffered from hyper-inflation (the rise in prices of more than 1027%).
We have examined the concept of "inflation" and its species.But this process can be classified as depending on the form of manifestation.There are obvious and hidden inflation.The first type is associated with the actions of the state.It is initially set below the equilibrium price level.In this regard, there is a shortage of goods in the market.Explicit inflation observed in the growth of price level.Her we can see a constant increase in the cost of goods and services.
What are the causes and types of inflation exist?The main classification, we considered, but in connection with which there is a constant rise in prices explained below.
constant increase in the mass of money in circulation is due to several reasons:
- the budget deficit causes include "printing press";
- State conducts an expansionary fiscal policy;
- widely used credit;
- debentures are means of payment;
- increases demand for goods and services as compared with the previous period;
- rising costs of production;
- Other reasons.
Inflation is inevitable in the market.It is important that it does not trigger uncontrollable process.Followed by inflation, mainly governments.
