The contents

Effective means of price control is the tax to additional cost. The manufacturers include this tax in the price of the goods or service, and difference of change of the rates of this tax directly influences the prices.The special direction of state economic politics is the state influence on the foreign trade prices. State encouragement of export, clearing of the exporters of the taxes (return of the taxes), and in some countries - the export grants, granting of the soft loans and transport tariffs by an essential image are reflected in conditions of a price competition in the world market.

Establishment of the prices on mineral raw material extracted in state mines, on the electric power from state power stations and railway, mail-telegraphic tariffs - example of fixing of the prices on the goods and services state sector.

These is artificial undercharges and the tariffs promote decrease of production costs in a private enterprise and increase of national competitiveness for the account is artificial of the lowered profitability or deficiency of these objects of a state ownership.

Fixing of the prices or establishment of limits of their increase in public sector - typical means of administrative economic regulation. It is seldom applied and, as a rule, in conditions of a market economy is inefficient in long-term and even intermediate term aspect. It is used more often in exclusive cases as a means of easing of social intensity.

National bodies carry out the control above the prices for the certain kinds of the goods.

Examples can serve an establishment of the prices on coal and black metals by the European association of steel, annual establishment of procurement prices on agricultural products in the European union, participation of the countries in the international conferences, organisations on separate kinds of the goods, tariffs for an airline traffic.

One of the difficulties of the questions of economic politics is the management of inflation. In the world there are not enough of countries, where in second half 20 centuries there was no inflation. Though it has come on change of former illness of market economy, which has become obviously to weaken, - cyclic crises.

The inflation is a depreciation of money, decrease of their buying power. Usually inflation has in the basis not one, and some interconnected reasons, and are shown it not only in increase of the prices - alongside with open, by price inflation has a place latent, or suppressed, inflation shown first of all in deficiency, deterioration of quality of the goods. In literal translation with the Latin inflation means “swelling”, i.e. overflow of channels of the manipulation by the superfluous paper money which has been not supplied with the appropriate growth of commodity weight.

The reasons of inflation are diverse. Usually in a basis of inflation the discrepancy of money demand and commodity weight - demand for the goods lays and services exceeds the sizes goods turnover, that creates conditions that the manufacturers and suppliers lifted the prices irrespective of a level of costs. A disproportion between a supply and demand, excess of the incomes above the consumer charges can be deviated by deficiency budjet (charges of the state exceed the incomes); by excessive investment (volume of the investments exceeds opportunities of economy); by outstripping growth of wages in comparison with growth of manufacture and increase of productivity of work; by an any establishment of state-set prices causing skews in size and structure of demand; by other factors.

Let's refer as an example to a sharp aggravation of deficiency state budjet in Russia in the second half of 80-th years (1985-1989 years - break between profitable and account parts of the state budget has grown, with 18 up to 120 billion rub., or from 3,5 % up to 19 % to the national income of the country). The increased deficiency has put huge harm to the money manipulation, has urged on inflation. The unjustified money payments sharply have worsened a situation in the consumer market.

The reasons of occurrence of inflation can be both internal, and external. To the external reasons concern, in particular, reduction of receipts from foreign trade, negative results of the foreign trade and payment balances. The inflationary process in Russia strengthened fall of the prices in the global market on fuel and colour metals making important clause of our export, and also adverse conjuncture in the grain market in conditions of significant import grain. In Hungary, which economy in the greater measure depends on a condition of foreign economic relations, just the external factor (deterioration of conditions of international trade, increase of the external debt) played a hardly probable not determining role in amplification inflationary processes. Thus the politics of escalating of export and restraint of import reduced growth internal, wholesale and consumer costs.

The inflationary rise in prices alongside with the marked factors is caused by the deeper reasons having basic character. Let's consider on an example of Russia.First, as a rule, one of sources of inflationary processes the deformation of economic structure expressing in essential backlog of branches of consumer sector at obvious super-changed development of branches of heavy industry serves and is especial of military mechanical engineering.

Secondly, inability to overcome inflation is deviated by lacks of an economic mechanism. In conditions of the centralised economy practically there was no feedback, there were no effective economic levers, which were capable to adjust a parity between money and commodity weight; as to administrative terminators, they “worked” insufficiently effectively. In system of financial planning state plan played a determining role, instead of Ministry of finance and not the State Bank, which “worked” under it, supporting the scheduled tasks financial and money resources without any restrictions.

Becoming traditional the politics of high rates of economic development ignored real resource opportunities. To support rates, the capital investments were constantly increased. In result the growth of consumption restrained; the efficiency of capital investments fell that negatively had an effect for economic growth and current manufacture. The means for new technology did not suffice, and continuous growing of fund of accumulation did not give desirable result. A problem died any more in amount of a capital investment, and in their efficiency, structure to reconstruct which economic mechanism prevented.

The contradiction and deficiencies deleted there are more means, and the financial and budget terminators were very weak or practically were absent. Unbalanced took place not only in the consumer market. Its basis - increasing disproportion in the manufacture, strengthening financially - financial not of balance, defects in system of planning, in the mechanism of the money manipulation, in absence of antiinflationary regulation.