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Examining the reasons of inflation, the economists will carry out distinction between two its kinds - “ by inflation of the buyers “ (inflation of demand) and “ by inflation of the sellers “ (inflation of costs). In effect, it is two, as a rule, interconnected, but unequivalent reasons of inflation: one lays on the part of demand (surplus of money resources at the buyers), another - on the part of the offer (growth of industrial costs).

Depending on character of inflation and rates of increase of inflationary processes distinguish the following types of inflation:

1) Slow inflation, for which the rather low rates of a rise in prices, approximately up to ten or several percents per one year are characteristic. Such inflation is inherent in the majority of the countries with the advanced market economy, and it is not represented by something unusual. The average level of inflation on the countries of the European community has made for last years about 3 - 3,5%.

2) Galloping inflation is difficult in ruling.

The rate of its growth is expressed usually in two-place figures. Such high rates in the 80-th years were observed, for example, in many countries of Latin America, some countries of Southern Asia. The galloping rise in prices shows itself unequally and has not the strictly designated quantitative parameters. The inflationary processes depend on a level of development of the country, social economic structure unsimilar regulation of price processes. In the period after war - the period of capitalism has gone through two large waves of inflation: at transition from military economy of a market type (1945-1952) and under influence “ of petroleum shocks ”, is sharp shocked all structure of the world and internal prices (1974-1981). But it was possible to western countries to stop inflationary processes, using various methods of antiinflationary regulation. For the small countries, for example of Sweden, it was important to avoid imported inflation, for what the increase of the prices of national currency was used. Other countries resorted to methods of restraint of inflation by means of money-credit politics.

3) The greatest danger represents super-inflation. Its conditional boundary - monthly (within three-four months) rise in prices more than 50%, and annual will be expressed four numbers in figures. The feature super-inflation that it appears practically unguided; the usual functional interrelations and habitual levers of management of the prices do not work. On complete power the printed machine tool works, the gamble develops mad. Manufacture will be disorganised. To stop or to brake super-inflation it is necessary to resort to extreme measures. But there is no unequivocal representation about that, how to struggle with super-inflation. The rather inconsistent recipes are assumed various, quite often.To outstrip inevitable, increase, expected by all, of the prices, the owners of “hot” money aspire as soon as possible gets rid of them. In result is developed great demand; those goods are bought up first of all which can serve a means of partial preservation of the savings (real estate, subjects of art, precious metals). The people work under pressure “inflationary crisis ”, and it grow a rise in prices, and the inflation begins to feed itself.

Classical example super-inflation - conditions which has been usual in Germany and a number of other countries after the First World War. In Germany in 1923 the level of a rise in prices was estimated 10 numbers and 12 numbers by numbers; the wages should be spent immediately, for within day of the price on products raised repeatedly.

The process of inflation is inconsistent. On the one hand, the money profits are increased, the capital investments extend, and with another - the rise in prices conducts to depreciation of the unused capital. Win not everything, and, first of all strong firms having the modern equipment, perfect organisation of manufacture. In the best rule(situation) there are social groups living on the not fixed incomes, if their nominal incomes will grow by rate overtaking a rise in prices.

From inflation the people who take money on credit can win, if not is stipulated, that percent for the credit should take into account an inflationary rise in prices.

But whichever there were positive functions of inflation, leaving from under the control and even remaining rather weak, adjusted, the inflation renders on a course of economic development the whole complex especially of negative phenomena.

To negative consequences of inflationary processes concern:

- Decrease of the real incomes of the population;

- Depreciation of the savings of the population (the increase of percents on the contributions, as a rule, does not compensate fall of the real sizes of the savings);

- The loss at the manufacturers of interest in creation of the qualitative goods (is increased release of the goods of poor quality, manufacture of the rather cheap goods) is reduced;

- Restriction of sale of agricultural products in city by the rural manufacturers by virtue of fall of interest, in expectation of increase of the prices on the foodstuffs;

- Deterioration of conditions of life mainly at the representatives of social groups with the firm incomes (pensioners serving, students, which incomes are formed for the account state budget);

- Easing positions of imperious structures (is reduced trust to the programs and measures planned and carried out government).

The management of inflation represents a major problem money-credit and in the whole economic politics. The ways of management are ambiguous, are inconsistent on the consequences. The range of parameters for realisation of such politics can be rather narrow: on the one hand, it is required to constrain growth of an inflationary spiral, and with another - to support stimulus of manufacture to create conditions for saturation of the market by the goods.

The management of inflation assumes use of the complex measures assisting in a certain measure to combine an insignificant rise in prices with stabilisation of the incomes. The tools of management of process differ depending on character and rate of inflation, features of economic conditions, specificity of an economic mechanism of the different countries.