First, as a rule, one of sources of inflationary processes the deformation of economic structure expressing in essential backlog of branches of consumer sector at obvious super-changed development of branches of heavy industry serves and is especial of military mechanical engineering.
Secondly, inability to overcome inflation is deviated by lacks of an economic mechanism. In conditions of the centralised economy practically there was no feedback, there were no effective economic levers, which were capable to adjust a parity between money and commodity weight; as to administrative terminators, they “worked” insufficiently effectively. In system of financial planning state plan played a determining role, instead of Ministry of finance and not the State Bank, which “worked” under it, supporting the scheduled tasks financial and money resources without any restrictions.
Becoming traditional the politics of high rates of economic development ignored real resource opportunities. To support rates, the capital investments were constantly increased. In result the growth of consumption restrained; the efficiency of capital investments fell that negatively had an effect for economic growth and current manufacture. The means for new technology did not suffice, and continuous growing of fund of accumulation did not give desirable result. A problem died any more in amount of a capital investment, and in their efficiency, structure to reconstruct which economic mechanism prevented.
The contradiction and deficiencies deleted there are more means, and the financial and budget terminators were very weak or practically were absent. Unbalanced took place not only in the consumer market. Its basis - increasing disproportion in the manufacture, strengthening financially - financial not of balance, defects in system of planning, in the mechanism of the money manipulation, in absence of antiinflationary regulation.
Examining the reasons of inflation, the economists will carry out distinction between two its kinds - “ by inflation of the buyers “ (inflation of demand) and “ by inflation of the sellers “ (inflation of costs). In effect, it is two, as a rule, interconnected, but unequivalent reasons of inflation: one lays on the part of demand (surplus of money resources at the buyers), another - on the part of the offer (growth of industrial costs).
Depending on character of inflation and rates of increase of inflationary processes distinguish the following types of inflation:
1) Slow inflation, for which the rather low rates of a rise in prices, approximately up to ten or several percents per one year are characteristic. Such inflation is inherent in the majority of the countries with the advanced market economy, and it is not represented by something unusual. The average level of inflation on the countries of the European community has made for last years about 3 - 3,5%.
2) Galloping inflation is difficult in ruling.
The rate of its growth is expressed usually in two-place figures. Such high rates in the 80-th years were observed, for example, in many countries of Latin America, some countries of Southern Asia. The galloping rise in prices shows itself unequally and has not the strictly designated quantitative parameters. The inflationary processes depend on a level of development of the country, social economic structure unsimilar regulation of price processes. In the period after war - the period of capitalism has gone through two large waves of inflation: at transition from military economy of a market type (1945-1952) and under influence “ of petroleum shocks ”, is sharp shocked all structure of the world and internal prices (1974-1981). But it was possible to western countries to stop inflationary processes, using various methods of antiinflationary regulation. For the small countries, for example of Sweden, it was important to avoid imported inflation, for what the increase of the prices of national currency was used. Other countries resorted to methods of restraint of inflation by means of money-credit politics.
3) The greatest danger represents super-inflation. Its conditional boundary - monthly (within three-four months) rise in prices more than 50%, and annual will be expressed four numbers in figures. The feature super-inflation that it appears practically unguided; the usual functional interrelations and habitual levers of management of the prices do not work. On complete power the printed machine tool works, the gamble develops mad. Manufacture will be disorganised. To stop or to brake super-inflation it is necessary to resort to extreme measures. But there is no unequivocal representation about that, how to struggle with super-inflation. The rather inconsistent recipes are assumed various, quite often.