December 12, 2010
Inflation in Macroeconomics
The most effective indicator of country’s economic health is its financial state. Financial system not only provides interconnections in economics, but also conducts macroeconomic regulation, and serves as a tool for governments to regulate economic development. For this reason, the activity of executive power in every country is directed towards stability of financial and credit system and overall financial state. In order to ensure the stability, inflation processes must be controlled. It is necessary because inflation results in harmful socio-economic outcomes: inflation leads to deformation of macroeconomic regulation instruments. Inflation is a process of price level ...