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Financial Analytics: Science and Experience
 

Managing inflation and money

Vol. 7, Iss. 46, DECEMBER 2014

Available online: 6 December 2014

Subject Heading: MONETARY POLICY

JEL Classification: 

Pages: 2-10

Semenov S.K. Astrakhan State Technical University, Astrakhan, Russian Federation
semenov_sk@mail.ru

Semenov K.S. CJSC "Avtogradbank", Astrakhan, Russian Federation
ks-semenov@mail.ru

Importance The article is relevant due to the need to continue research and scientific discussions on the issues of money circulation and inflation, the availability of certain understudied topics such as financial, analytical and applied issues of money circulation and inflation, particularly the methodological support to organization and regulation.
     Objectives The paper analyzes inflation development factors, studies financial regulation of inflation, and considers organizational and economic instruments of monetary and anti-inflationary policies and system-level interrelations of the methods of monetary and anti-inflationary policies.
     Methods The works of Russian and foreign economic scientists served as a theoretical and methodological basis of the paper. The article discusses different aspects, assessment, regulation of inflation and anti-inflationary policy. We introduce the notions of monetary reform expectations (probability estimate), devaluation, economic crises, which we propose to unite, including certain inflation expectations, by general attributes, and to define as negative economic estimates (expectations), and the attributes themselves, the conditions of their formation and the influence of expectations on the economy as the theory of negative economic expectations. We have used the dialectic principle, which reveals the possibility to research inflation management mechanisms over time and their interrelation, as well as management tools.
     Results We have analyzed the inflationary processes in Russia, the monetary and anti-inflationary policy within the framework of our theory of negative economic estimates of probability (expectations).
     Conclusions and Relevance We came to a conclusion about the link between inflation and inflation expectations and other phenomena, which are described and classified in our theory of negative economic expectations. We provided an analysis of the theory in terms of its modern practical use. The ratio of target and actual consumer-price inflation based on statistical data illustrates the efficiency of anti-inflationary measures. There is a close link between an anti-inflationary and a monetary policy. In general, a monetary policy to some extent can be viewed as a monetary component of anti-inflation regulation. We have developed proposals on anti-inflationary measures.

Keywords: inflation, estimation, regulation, money reforms, devaluation, economic crisis

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