Ministry of education tashkent financial institute

Conclusion

Current period inflation has different characteristics from past period inflation. Previous inflation was temporary, usually resulting from the issuance of paper money to cover military spending during the war. One of the main ways to finance government expenditures without any income, ie without increasing the rate of production and turnover, or when these indicators are declining, was to issue paper money. As a result, the money in circulation exceeded the amount of gold required for circulation, and the real value of money fell below its nominal value, that is, in fact, began to express less gold than indicated on the currency itself. In recent years, inflation has become a frequent process, and its quality is changing. The reason for this is that current inflation: first, to a steady rise in prices; secondly, it leads to the failure of the general economic mechanism as a result of violation of the law of money circulation. The main cause of inflation in the twentieth century is not only the scarcity of goods, but also the existence of crises in production and processing.

Current inflation is, firstly, a violation of the law of money circulation as a result of the excess of money demand over the supply of goods; second; - production costs.

In countries with market economies, the following measures should be taken to combat inflation and strengthen the national monetary system:

- Strengthening the national economy, overcoming the decline in investment activity and ensuring a reasonable level of economic development;

- Development and implementation of state strategy for the organization and development of competitive, high-tech production;

- Changing the composition of production assets at enterprises producing consumer goods and the introduction of modern equipment and technologies;

- Stimulation of investment and credit activities of commercial banks;

- Improving the tax system and focusing on the incentive function of taxes in this area;

- government support for small business and private entrepreneurship;

- formation and development of a single market of products, currency, credit, land, real estate, labor and securities in the country;

- change monetary policy based on the state of economic development;

- Liberalization of foreign economic activity and stimulation of export of products, works, services;

- state regulation and control of revenues, expenditures and prices while maintaining free market prices;

- reduction of the state budget deficit by non-inflationary means;

- In-depth analysis of the strategic gold and foreign exchange reserves of the state and their rational use.

In general, the low level of inflation was achieved through the implementation of fixed money - credit and the surplus of the state budget. In the transition to a market economy, it is important to determine the scope of fiscal and monetary policy. The budget unit plays an important role in the financial plans of any country. The fact that the budget plays such an important role in the life of society and the state makes it necessary for the budget to exist in accordance with the law. That is why the state budget is approved by the legislature.

The development and implementation of the above measures will take some time. We believe that the implementation of a prudent anti-inflation policy will ultimately lead to the strengthening of the national currency and the stabilization of the monetary system.