THE ACTUAL IMPLICATIONS OF INFLATION

Abstract

The authors have started from the idea that inflationary phenomenon is a companion, the cause and the effect of the globalization of poverty in the broader context of world economy globalization. Therefore, starting from a common definition of inflation, the first objective was to identify causal relationships that singularize contemporary inflationary process. After that, attention was focused on the implications of inflation in the current stage, bearing in mind that monetary financial theory and practice are operating with perfectly anticipated inflation or imperfectly anticipated inflation. Inflation has great implications on the long-term contracts and wage contracts.

Keywords

• inflation
• money suplly
• price index