A New Dimension of Inflation
L. Evstigneeva, Ruben Evstigneev
Abstract
L. Evstigneeva, Ruben Evstigneev
Abstract
The article attempts theoretical rethinking of the inflation phenomenon. The economists have got accustomed to discuss "monetary vs. non-monetary nature of inflation", though such an approach poorly corresponds with present-day realities. Therefore the authors use the methodology of economic synergetics in their study of inflation. They reveal complicated correlations between such functions of money as a cost equivalent, a form of cost, and a reproduction model. The analysis leads to a model of an inflationary market mechanism that allows to compensate the growing capital intensity of national income by a market expansion and thus to maintain a financial stability in the economy.
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The article attempts theoretical rethinking of the inflation phenomenon. The economists have got accustomed to discuss "monetary vs. non-monetary nature of inflation", though such an approach poorly corresponds with present-day realities. Therefore the authors use the methodology of economic synergetics in their study of inflation. They reveal complicated correlations between such functions of money as a cost equivalent, a form of cost, and a reproduction model. The analysis leads to a model of an inflationary market mechanism that allows to compensate the growing capital intensity of national income by a market expansion and thus to maintain a financial stability in the economy.
Key concepts: Economics, Inflation (cosmology), Economic stability, Monetary economics, Keynesian economics, Dimension (graph theory), Phenomenon, Capital (architecture)