Inflation in Russia has its own characteristics.But, first of all, we should consider the very concept of this word. The existence of this phenomenon is rooted in the days when people began to use money. Initially, this word denoted the process by which an increase in the money supply in circulation occurs. It began to be used in North America, and then in some European countries.
Инфляция – это явление, имеющее socio-economic character, creating an imbalance in society, the market economy of the state and its various economic spheres. For the economy of any country, it is a serious problem.
Inflation in Russia, unlike in other countries,has always had its own specifics. During the period of socialism, a situation was created where the population had enough money, but they were not provided with the goods.
The Russian economy has always had its waydevelopment, slightly different from the classic. In each period of its development, inflation in Russia was characterized in its own way. In the 1930s, it was perceived as issuing money into circulation more than necessary. The 40s were marked by a strong depreciation of cash. Inflation in Russia in the 50s was regarded as an excess of money in relation to the gold needed for full circulation. In the period of the 60s and 70s, inflation had a diverse character, and therefore it could not be assessed unequivocally. Inflation occurred in a depressed form and was accompanied by a significant increase in prices, a decrease in the quality of goods and their total deficit.
Inflation in Russia depends on several factors:long term or short term, cash or not. Since 1992, there has been a sharp jump in prices, which determined the pace of the phenomenon in question. At this time, the government of the country liberalized prices, removing control over them and production processes, over imports and exports.
The result was a shortage of money.She was not enough for the calculations due to the rapid rise in prices. The issue of additional money supply and the organization of the cashless payment system did not solve the problem. The rate of inflation in Russia was very high. The money supply grew by 7.6 times against the background of a 26-fold increase in prices. But with each subsequent year, this ratio changed for the better and became minimal. This was due to the reforms. The central bank changes the amount of money supply in the system, which allows you to change the interest rate in a smaller or larger direction.
Inflation in Russia is a consequence ofinflation costs and occurs against the backdrop of the budget deficit. Therefore, the ways to solve it should be different. Limiting the amount of cash does not give a full result. On the contrary, this led to a decline in production, a decline in the standard of living of the population and an increase in debts in various fields.
Thus, Russian inflation is due to the budget deficit and costs, which are inflationary in nature.
Another feature of this phenomenon in Russia was the simultaneous decline in production. Stagflation occurred.
The main reason for the inflationary process in Russia should be considered to be the abolition of pricing control in the period of market formation against the background of weak competition.
Currently the government is conductinga policy that aims to curb inflation, to stabilize the market, including the currency market, which plays a large role in this process. This contributes to the development of production in the country and makes it less risky. In addition, low inflation significantly improves the quality of life of the population and the stability of the economy.
