Inflation processes as determinants of development of the economic activity subjects: economic and legal aspects

¹ Kyiv National University of Technology and Design, Kyiv, Ukraine
² Kyiv National University of Technology and Design, Kyiv, Ukraine
³ National Aviation University, Kyiv, Ukraine.

¹ Corresponding author: lena-2009-19@ukr.net

Abstract

Today, inflation takes one of the leading places among the factors that give rise to social and economic destabilization. The purpose of the study is to determine the nature of inflation and its impact on the real sector of the economy, as well as factors that it generates in the process of distributing and redistributing financial resources and justifying measures to offset the negative effects of inflationary impact on the Ukrainian economy. The authors used the following methods of research: systematic approach, theoretical and empirical methods of scientific knowledge. The essence of inflation and its influence on the real sector of economy are investigated. The factors that generate inflation during the distribution and redistribution of financial resources are indicated: political and social factors contributing to anticipating inflationary expectations, which accumulates inflationary potential; the institutional support of economic development is to assume stabilization of inflation through the mechanism of managing the money supply; factors of inflation reflections, capable of generating further unmanaged negative behavior of economic agents, which can be disclosed through the concept of "inflation of the conflict"; inflationary expectations require the implementation of monetary policy of the state.