Abstract

The article analyzes the inflation processes in Ukraine and their consequences for the country and its population. Inflation is the reverse side of reducing the purchasing power of money, and is characteristic of paper and non-cash, which have no intrinsic value and are not real goods. When money lost it’s gold basis, inflation became an integral part of the economy in the modern world. Cash factors determining the growth of inflation, showed an increase in government spending, an increase in public debt; issue of money, unbalanced demand for it; increase incomes in isolation from productivity growth; increase of the velocity of money. A monetary factor does not indicate the origin of the monopolization of the economy; unbalanced economic development; unjustified government regulation of the economy; negative balance of payments. All these signs of inflation are present at this stage of development of the Ukrainian economy. Such countries with transition economy as Ukraine, are unable to overcome inflation. The growth of debt between economic entities, for all types of social payments and budgets indicates the transformation of inflation in payment crisis. Solving the budget deficit problem by increasing public debt led to a deterioration of the economic condition of the country and brought it directly to bankruptcy.

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