ESSENCE AND ACTUALITY OF KAIN´S THEORY OF INFLATION

Abstract

Phenomen of inflation has been Representing for a long time an universal problem and one of the most serious (beside the unemployment) troubles specific for modern social - economic changes in the most of countries. In other words, inflation and specially its intensive work affects badly the whole economic and general soCIEty activities, producing unstability, disorientation and chaos in general (under hiperinflation conditions) and so causing nonrational behaviour of economic and social subjets. That points on seriousness and complexity and actuality of this phenomen with, first of all, economic but also social and political consequences too. This kind of complexity of inflation, or a great number and variety of its reasions, and troubles and produced consequences, caused enormous interests and considering of this problem in many of theoretical and empiry works in a number of world economic authors and among them kain who has a special position and importance. Regarding the specific points of Kain’s inflation interpretings, they can be important and actual in condition of economic functioning in many of countries which are in transitional processes and streams of world globalization. This work deals with essence of his theory of inflation.