Ministry of education tashkent financial institute

2. Classification of inflation

In international practice, there are three main types of inflation in terms of price growth, ie the growth of money supply:

1. Slow inflation. This inflation is present in economically developed countries, where prices for goods, works and services can rise by an average of 3% to 10% per year. In these countries, the money supply is maintained and the purchasing power of the national currency is maintained.

2. Severe inflation. This inflation is present in economically developing countries, where prices for goods, works and services can rise by an average of 10% to 100% per year and in some cases up to 200%. As a result, the money supply increases and the purchasing power of the national currency decreases. The process of accumulating gold, real estate, rather than accumulating the national currency among the population of the country, is intensifying.

3. Uncontrolled (hyperinflation) inflation. In this inflationary situation, prices for goods, works and services will increase by more than 1000% per year or more than 100% per month. In this case, there will be a crisis in the national economy. As a result, production and the market operate without control, and the gap between price and wages increases. The people of the country buy goods with paper money. This has led to an overflow of paper money in circulation, which is not provided with goods and services.

As noted above, the root cause of inflation is usually not one but several, and is not only reflected in price increases, but also in price management. 'ladi. In this regard, the following forms of inflation are distinguished:

1. Transparent inflation. While demand-side macroeconomic inequality is characterized by a constant rise in prices, such inflation is called transparent inflation. Transparent inflation does not disrupt the market mechanism: as prices rise in some markets, they may fall in other markets at the same time. The main reason for this is that market mechanisms will continue to exert their influence, provide information on prices to the national economy in a transparent manner, promote investment, and stimulate supply by expanding production.

2. Hidden inflation. This type of inflation takes the form of a situation in which the price of some consumer goods is administratively set and regulated by the state. The main purpose of this is that the state sets prices for some products at a "socially low" level. Under conditions of hidden inflation, a sharp rise in prices may not be observed.