• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  6. 6
  7. 7
  8. 8
  9. 9
  10. 10
  11. 11
  12. 12
  13. 13
  14. 14
  15. 15
  16. 16
  17. 17
  18. 18
  19. 19
  20. 20
  21. 21
  22. 22

The purpose of this coursework is to study the characteristics of inflation in the Russian economy

Extracts from this document...


´╗┐Finance University under the Government of the Russian Federation International Finance Faculty Department ?Macroeconomics and Macroeconomic Regulation? Laboratory work on Macroeconomics on the topic: ?The problem of inflation in Russia and anti-inflation macroeconomic policy? Made by student(s) of group IFF 2-2 Kirill Lazutin Tutor: associate professor, candidate of science in economics Kadysheva O.V. Moscow 2012 Content Introduction?????????????????????????? 2 Chapter 1. Theoretical aspects of inflation and its implications?????? 3 1.1 Inflation as a form of macroeconomic instability?????????? 3 1.2 Types of inflation??????????????????????. 6 1.3 Socio-economic effects of inflation???????????????. 8 Chapter 2. Features inflation RF and anti-inflation policy of the State??? 12 2.1 Problems of holding inflation in Russia??????????...??... 14 2.2 Analysis of the rate of inflation for 2010-2011??????????... 16 2.3 Anti-inflation policy of the state in 2011????????????? 24 2.3 The inflation outlook for 2012????????????????? 31 Conclusion??????????????????????????. 34 References??????????????????????????. 36 Introduction The problem of inflation is one of the most pressing and complex issues in modern economic theory. Inflation hinders social and economic development, as undermining the competitiveness of the participants of the market economy leads to a redistribution of the national income in favor of monopoly enterprises and the state, the shadow economy, a decrease in real wages, pensions and other fixed income, increases property differentiation of society. Most developed countries have made it a significant reduction. The problem of inflation in the Russian economy remains. Although the inflation rate in Russia has been steadily and slowly declining, the need to further reduce its level remains. This course work will be devoted to the study of the features of inflation in Russia. The relevance of the topic chosen is that at present the formation of the budget among the politicians rather sharp discussion of the issues to be lower inflation, as well as the relationship of inflation and economic growth. It is believed that inflation is a brake on the development of the Russian economy, as the desire to reduce the money supply increase inflation fears of not stimulate economic growth. ...read more.


Falling confidence in future income, the population loses its economic incentives, reduced business activity. Next effects of inflation - the real money interest rate is reduced by the annual percentage increase in inflation. And finally emphasize that inflation is almost always combined with high, although part-time work and a large amount of national production. Conversely, a decrease in inflation coincided with the decline of production and rising unemployment. The negative effects of inflation evident in the field of foreign relations. Inflation has a negative impact on the balance of payments of the country, leading to a depreciation of the national currency, creating problems of repayment of foreign debt. With rising prices in the domestic market is declining exports and rising imports. The balance of payments is negative. For the balance of payments the state has to use foreign exchange reserves, and then, when the reserves are exhausted, devalue the currency. The latter measure although increases export opportunities for the economy, but creates difficulties in the development of end-uses of imported goods or raw materials. In addition, the devaluation makes it extremely difficult external debt: to return the unit of foreign currency requires increasing the number of units of the national currency. An important consequence of inflation is to redistribute income. With rising living standards reduced the general population by reducing its real income. However, different social groups have different degrees of loss from inflation. First, the rise in prices affects persons who receive fixed incomes, pensioners, students, the unemployed. Government measures to the indexation of pensions, allowances, benefits, tend to lag behind the increase in prices. Significant losses are almost all persons employed in the public sector. Wages, especially of education, science, culture, etc., always grows more slowly than prices. This reduces their motivation to work. Is the movement of labor from these socially important spheres in more profitable sectors. Deterioration of living conditions mainly from representatives of social groups with solid income (pensioners, employees, students, whose revenues are from the state budget). ...read more.


As a result, the process of inflation - in its various forms - is not accidental, but very stable. Control inflation is the most important problem of monetary and economic policy in general. To consider in this polysyllabic, multifactorial nature of inflation. It is based on not only monetary, but also other factors. For all the importance of public spending cuts, the gradual contraction of the monetary issue requires a broad range of anti-inflation measures. Among them - the stabilization and stimulation of production, improve the tax system, the creation of market infrastructure, increasing the responsibility of enterprises for the results of operations, changes in the exchange rate, holding certain measures to regulate prices and incomes. Normalization of monetary inflation and opposition demands tuned, flexible solutions that consistently and purposefully carried out in life. Today one of the main objectives of politicians and economists Russia is to reduce inflation. To do this, special attention is paid to de-monopolization, the elimination of corruption, an internal competitive economy and the real development of the civil society. The consequences of the heat wave in 2010 had a negative impact on inflation. Because of the drought in major agricultural regions of Russia in 2010, the harvest had dropped significantly, leading to a significant increase in food prices, from III quarter of 2010. As a result, the overall consumer price inflation in 2010 was 8.8%, which is worse than the original projections. While inflation has not exceeded the post-Soviet low achieved in 2009. In early 2011, there was a significant acceleration of consumer prices. However, due to the actions of the Government and the Bank of Russia, as well as lower food prices in world prices has slowed. Since the beginning of the year (as of June 14, 2011), the consumer price index was 4.8%, for the year is expected to increase prices in the range of 6.5-7.5%. In 2012 the task of reducing inflation to 6%, in 2014 - to a level that does not exceed 4-5%. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Macroeconomics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Macroeconomics essays

  1. Marked by a teacher

    What are the Problems and Possibilities of Economic Monetary Union?

    4 star(s)

    Workers within the EU are reluctant to migrate to areas with employment in other member states; this leads to the rigidity of the market.

  2. Is inflation always and everywhere a monetary phenomenon?

    The effect of an increase in the money supply, in the long-run, is to increase prices, and increase interest rates with no effect on output. The increase in prices is proportionately the same as the initial increase in the money supply. The term for this argument is long-run money neutrality.

  1. What is the relationship between money supply and inflation?

    There are many ways of targeting the rate of inflation. Some of which include the Fiscal Policy, the Monetary Policy, Supply-Side Policies and Demand-Side policies. The Fiscal Policy is aimed to manage the level of total spending by affecting aggregate demand by altering the balance between government expenditure and taxation.

  2. Explain how monetary policy works under an inflation targeting regime

    For instance, one simple method of inflation targeting called the Taylor rule regulates the interest rates with respect to changes in the inflation rate and the output gap. Mishkin, (1999), mentions that recent researches suggested that inflation targeting countries are experiencing both a reduced inflation rate and inflationary expectation.

  1. Can Economist Predict House Price Movements

    It is not a prediction itself but will allow making prediction of the relationship between the AHP and DI in this test. `An hypothesis is a prediction of the relationship between an independent variable and dependent variable in an experiment.10 `The null hypothesis, H0 represents a theory that has been

  2. Discuss the role of government policy in reducing unemployment and inflation

    power of that person has fell down as the same amount of inflation. Furthermore high inflation will affect the savings negatively. If the annual interest rate is lower than inflation rate, money will loose value since real interest rate will be negative.

  1. The Impact of Domestic Policies on UK Investments & Exports During the Financial Crisis ...

    G & M (2008-2011)?.......................??..18 Policy Impacts on C, G & M????????????.........................???18 7.0: Impact on UK Growth (2008-2011)???????.........................????..19-21 8.0: Conclusion??????????????????.................??????22 9.0: References?????????????????...................??????..23 10.0: Appendix 10.0?????????????..................??..???..??..24-29 10.1: Appendix 10.1?????????????..................................????..30-32 1.0 Introduction ________________ 1. This report will examine the impact of specific economic policy reforms on the aggregate economy of the UK, using the theory of AD.

  2. Economics Questions on National Income, Aggregate Demand and Business Cycles.

    any other regulatory committee, that can determine the rate of growth and size of the money supply, which can affect interest rates. The monetary policy is sustained by actions like increasing interest rates, or changing the amount of money banks need to keep in the reserve.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work