The dual nature of the dual form

However, in a similar way would be considered and adjusted accordingly, taking into account inflation, higher taxes, increase bank interest rates, unemployment, and other indicators of market economy.

Transparency in this mechanism is not

As such, it is with this kind of process still has a job and the current inflation rate. Interpretation of inflation as a phenomenon of the split, the expansion of her constituents, including those related to, but not identical price increases, with the measurement of its devaluation and revaluation of the currency continues to remain aloof. Hence the continuing process of inflation, manipulation, use it for personal gain, and sometimes fraud. Mechanism to determine the inflation manipulation class, and so it is always and everywhere sham and hidden. Transparency, a clear separation in the mechanism of inflationary and non-inflationary factors, splitting them into components, an objective assessment of the impact on the overall process is almost there.

Is there a need for such a mechanism in a poor economy and the deficit, which is for many years and, unfortunately, will continue to be our economy Judging by the high rates of inflation, the answer can only be yes unfortunately, there is.

Part 2. Measurement of Inflation

Strictly speaking, inflation - is reducing the cost of the currency, defined as their exchange rates or accounting (quotes). In plain language - is the depreciation of money as a result of rising prices, a soap 'bubble' (from Lat. Inflatio - ębulge"). Antipode of inflation - deflation, meaning growth rates equivalent to the maintenance, improvement of their course. In the case of inflation, we have an increase in the amount of money based on the weight traded goods, services and capital, and with deflation - reducing the amount of money at the same mass of goods.

Typical for Russia

In the case of conversion of money (currency) inflation and deflation can be accompanied by a devaluation or revaluation. Devaluation is understood as the depreciation of the currency (in whole or in the part that is subjected to conversion), and revaluation - as the appreciation of the national currency in the same sense and volume.

Inflation is usually processes, often wrongly, as price increases. Meanwhile, inflation is not the same as price increases, as well as deflation - to reduce them. Equating to an increase in inflation of prices leads to an overestimation of its modulus as compared to the actual value of inflation and exaggerated volumes down the line - excessive emission of currency, artificially inflate cash flow and, as a consequence, the emergence of a new round of more inflation.

The situation is aggravated, and expanding the scale of inflation in the devaluation of the currency, which requires a dual analysis. For Russia, this case was typical throughout the reform 1991-2002. until the beginning of last year. In the case of inflation, accompanied by a revaluation, which is characteristic of Russia in 2003, the situation is smoothed, and the differences in units of inflation and rising prices are declining.