One of the most significant factors influencing inflation - is the emission of cash, which are without a real base, that is not backed by commodities or gold reserves of the country.Sometimes this happens if the budget does not enter the right amount of money, but they need to spend the state, as is necessary to support the functioning of the entire machine power to carry out social programs, and so on.

reduction in production

If a country has produced fewer goods than it should be public, but his well-being at the same time increases, then there is a surplus of available funds and a lack of ways to spend it.Then inflation starts to grow rapidly.In such circumstances, enterprises producing goods, i
s becoming increasingly difficult to survive, which further boosts inflation.

human factor

human factor - is the most difficult moment, which is considered uncontrolled.It may happen as a result of any process of the people spreading the rumor that forces people to spend or invest urgently their savings, to do something else.The economy of many countries is quite fragile, and if all the residents will simultaneously make the same financial transaction, it can not survive.For example, if the population begins to buy all the goods of one kind, it will inevitably lead to an increase in the price of them, and after that can also raise prices for other goods.Similarly, it can grow rate of foreign currency against the local.


This, unlike the previous ones, reduces inflation.If a particular sector of the economy or the price of a particular group of products managed by a single company, it is easy to raise the price by adjusting demand.But if a lot of these companies, they will not work together, so the cost of goods will continue to be a natural, it will not allow inflation to grow too fast.

local bonds

State may issue such bonds, to reduce the amount of money involved in trafficking.In the future, people who purchase such bonds, they can receive a percentage.To load this way, the public should trust the government and be sure that the money spent on the bonds will be returned.Otherwise, the public will be easier to entrust their money to banks.Interest on bonds and bank deposits are usually the same.Reducing the funds involved in the back, always leads to a decrease in the rate of inflation.