A New Dimension of Inflation

Abstract

The article attempts theoretical rethinking of the inflation phenomenon. The economists have got accustomed to discuss "monetary vs. non-monetary nature of inflation", though such an approach poorly corresponds with present-day realities. Therefore the authors use the methodology of economic synergetics in their study of inflation. They reveal complicated correlations between such functions of money as a cost equivalent, a form of cost, and a reproduction model. The analysis leads to a model of an inflationary market mechanism that allows to compensate the growing capital intensity of national income by a market expansion and thus to maintain a financial stability in the economy.