Inflation



Inflation (Инфляция) is phenomenon of the economic life of a country, characterised in significant reduction of value of the national valuta; the national money become "light".

In year 2014, the widely used example of inflation is change of value of the Russian ruble, measured in some other valuta, for example, the US dollars, or, as in the graphic at right, in cents of the dollar. The drop of price of rouble is especially fast since the Russian embargo on the import of the foreign food into Russia; that embargo had been declared as Russian response to the sanctions, related with the Russian invasion into Ukraine. Price of the ruble versus time, since 2014 July, can be approximated with linear function; its graphic crosses the abscissa axis in year 2016. The approximation in figure had been made 2014 October 27; during 2014 November, the drop of price of ruble looks to be faster, than the linear extrapolation.

Un general, inflation is caused by the extensive emission of money, that is not supported with production of goods (that could be sold for these money).

Often, strong inflation begin before big wars: On one hand, the secret spending of the budget on the military goals (manufacturing of the weapon, recruiting and education of soldiers, their salary and supply) provoke the emission of the extra monetary signs. On the other hand, the corrupted administration, expecting the crash of administrative system, try to emit as much money as possible, legalise (robe) them with any (often absurd) projects and grants, convert to the foreign valuta and save in foreign countries at the hidden bank accounts or as property (luxury boats, castles, jewerly, etc.).

As the inflation becomes strong, the corruptioners use the state credits to buy foreign valuta. The growth of its price, measured in the national valuta, allow to cover the debt, together with the interest, and gives the fast benefit, that cannot be achieved with development of industry nor with production of goods for the market.

One of reasons of progressing of inflation in Russia in 2014 is permanent lie by Vladimir Putin, and, in particular, that about the Russian invasion into Ukraine .

At strong inflation, even the ministers usually cannot even estimate it quantitatively .

Keywords
Corruption, Putin world war, Ruble, Russian invasion into Ukraine, Sanctions