Inflation As A Tool Of Redistribution Of National Income

In the beginning of the XXI century the problem of inflation is still actual. Redistribution of national income not due to economic efficiency and not related to social justice is the most painful manifestation of inflation. To investigate the nature of the inflationary process and its relationship with redistributive processes in society. To analyze the causes of inflation from the point of view of its redistributive nature. The reproductive approach is used for the analysis of inflationary processes, the basic principle of the study is the dialectical-materialist method that allows to know the nature and causes of inflation in the most adequate reflection of their dynamic integrity. Inflation is a powerful tool to redistribute national income, consciously used by economic entities and generated within the economic system. The redistributive nature of inflation manifests itself in two ways. Inflation is both a consequence of the desire of economic agents to redistribution the created social product and the reason for this redistribution. The final results of the redistributive processes do not always meet the interests of their initiators, which leads to further attempts of inflationary redistribution of wealth. Causes and factors of inflation, traditionally considered by economic theory, are essentially mechanisms of such redistribution. We concluded that inflation, with all the variety of its manifestations, causes and effects, was and remains a tool of changing proportions of the primary distribution of income between the participants of the reproductive process. Understanding the underlying mechanisms of this process will allow, on the one hand, to build a consistent concept of inflation and its causes, on the other hand – to form the most adequate approaches to anti-inflationary policy of the state.