Inflation in Russia has its own characteristics.But above all, we should consider the very concept of the word.The existence of this phenomenon is rooted in the time when people began to use the money.Originally, the word meant a process in which there is an increase in the money supply in circulation.It began to be used in North America, and later in some European countries.
inflation - a phenomenon that has social and economic in nature, creates an imbalance in society, a market economy, the state and its various business areas.For any economy, it is a serious problem.
Inflation in Russia, unlike other countries, has always had its own specifics.During the period of socialism created a situation where the money from the population are sufficient, but they were not provided with the product.
Russian economy has always had its own way of development, a little different from the classic.In every period of its development, inflation in Russia was characterized differently.In the 30s it was seen as the release of the money in circulation is more than necessary.40s were marked by a strong devaluation of money.Inflation in Russia in the 50s was regarded as a surplus of money in relation to gold, you need to complete treatment.In the period of 60-70 years, inflation was diverse in nature, and therefore it can not be assessed unambiguously.Inflation occurred in subdued form, and accompanied by a significant rise in prices, lower quality goods and their total deficit.
Inflation in Russia depends on several factors: the long-term or short-term, cash or not.Since 1992, there was a sharp jump in prices, which determined the pace of the phenomenon.At this time, the government liberalized prices, removing their control and processes, import and export.
This results in a shortage of money.It was not enough for the calculations due to the rapid rise in prices.Release of additional money and organization of the system of cashless payments has not solved the problem.The inflation rate in Russia was very high.Money supply increased by 7.6 times against the background of a rise in prices by 26 times.But with each successive year, this ratio has changed for the better and became minimal.This is due to the reforms.The central bank changes the quantity of money in the system, which allows you to change the interest rate in a smaller or larger side.
Inflation in Russia is the result of cost inflation and against the background of the budget deficit.Therefore, and its solutions have to be different.Limiting the amount of money does not give full effect.On the contrary, it led to a decline in production, declining living standards and the growth of debt in various fields.
Thus, inflation in Russia is due to the budget deficit and the costs, which are inflationary.
Another feature of this phenomenon in Russia is both a decline in production.Stagflation occurred.
main cause of the inflationary process in Russia should assume the cancellation of control over pricing in the period of market amid weak competition.
Currently, the Government's policy, which is aimed at curbing the inflation rate, to stabilize the market, including foreign exchange, which plays an important role in this process.It promotes the development of production in the country and makes it less risky.In addition, low inflation significantly improves quality of life and economic stability.
