Inflation in Russia and its characteristics

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 goes back to the times when people began to use money. Initially, this word denoted the process under which the money supply in circulation is increasing. It began to be used in North America, and then in some European countries.

Inflation is a phenomenon of a socio-economic nature, creating an imbalance in society, the market economy of the state and its various economic spheres. For the economy of any country, it poses a serious problem.

Inflation in Russia, unlike 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 own development path, slightly different from the classical one. In each period of its development, inflation in Russia was characterized in its own way. In the 30 years it was perceived as a release of money in circulation to a greater extent than necessary. The 40s were marked by a strong depreciation of cash. Inflation in Russia in the 50's was regarded as a surplus of money in relation to gold, which is necessary for full-fledged circulation. In the period 60-70-ies, inflation was of a varied nature, and therefore it can not be assessed unambiguously. Inflation took place in a suppressed form and was accompanied by a significant increase in prices, a decline in the quality of goods and their total deficit.

Inflation in Russia depends on several factors: long-term or short-term, money or not. Since 1992, there has been a sharp jump in prices, which determined the pace of the phenomenon under consideration. At that time, the government of the country liberalized prices, removing control over them and production processes, over imports and exports.

As a result, there was a shortage of money. It did not become enough for settlements due to the rapid price increase. The issue of additional money supply and the organization of a cashless settlement system did not solve the problem. The level of inflation in Russia was very high. The money supply grew 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 carried out. The central bank changes the amount of money in the system, which allows you to change the interest rate on a smaller or larger side.

Inflation in Russia is a consequence of inflationary costs and occurs against a background of budget deficit. Therefore, the ways of solving it must be different. Limiting the amount of money does not give a full result. On the contrary, this entailed a decline in production, a decrease in the standard of living of the population and an increase in arrears in various areas.

Thus, Russian inflation is caused by a budget deficit and costs that are inflationary in nature.

Another feature of this phenomenon in Russia was a simultaneous decline in production. There was stagflation.

The main reason for the inflationary process in Russia should be considered the abolition of control over pricing in the period of market formation against the backdrop of weak competition.

Currently, the government is pursuing a policy aimed at curbing the rate of inflation, stabilizing the market, including the currency market, which plays an important role in this process. This contributes to the development of production in the country and makes it less risky. In addition, a low level of inflation significantly improves the quality of life of the population and the stability of the economy.