INFLATION, ECONOMIC GROWTH AND UNEMPLOYMENT

Abstract

The main characteristic of today's inflation is its universality, durability and the power of rapid spread and transmission. Тhere is not more reliable and more sophisticated way of breaking down the existing foundations of society from the depreciation of its currency. That process on the side of the destruction connects all the hidden forces of economic flows. Тhere is not generally accepted inflation theory that would satisfy and would give the greatest number of responses to the complex phenomenon of inflationary disorder, while at the same time giving the economic policy makers reliable indicators for conducting an efficient stabilization policy. Economic theory is faced with new questions, even when defining the problem itself . Inflation does not repeat in the same form, it further expresses the complexity of this problem, although it always binds its external manifestation to a steady and rapid increase in prices. Today, there can be inflation without price growth (controlled inflation). Inflation is no longer explained as a disproportion between supply and demand, i.e. excess demand over the supply of goods and services. The theory of inflation is more pre-tasking to explain the initial impulse and the mechanism of their cumulative expansion. The relation to the causes and types of inflation is changing. The question is how to ensure a high rate of economic growth with technological stability of prices and possible full employment. In connection with the previous one, other questions are asked, how growth is justified, with a growing appreciation of the need for introducing a new distribution system. The distribution system often has a crucial effect on the formation of accumulation and consumption and their relations. Inflation today develops under completely different conditions of various economic, political and other structures of the society as a whole. This means that there are new factors that decisively affect the production, supply and demand, prices and money in the cyclical fluctuation of modern society.