Inflation as a tool of regulating modern market economy

Inflation is a phenomenon inherent in any system operating in conditions of market economy. It is considered a necessary evil; thus, economic subjects try to adjust their behavior and activities to inflation or even use it to their advantage. The purpose of the article is to analyse the consequences of inflation in the sphere of economic growth and in the national product distribution in highly developed market economies. At the same time, the analyses are the basis for investigating to what extent the efects of inflation and the deflationary activities may be utilized as a tool of regulating a modern market economy as a whole. The budgetary, monetary and credit policy realized in conditions of inflation is a factor limiting the dynamics of economic growth. The processes of the prise rise are autonomous with respect to the increase in the unemployment rate. In turn, in the sphere of redistribution of national product they generally inflict the decrease in real income from work or property. Similar negative consequences are caused by inflation in the sphere of balance of trade and payments (decreased price competitiveness of goods and services). In highly developed countries operating in conditions of market economy inflation may to some extent be utilized as a tool regulating those systems. However, the consequences of such operations are negative and the possibilities of using inflation to attain positive results in the economic process are insignificant.Digitalizacja i deponowanie archiwalnych zeszytów RPEiS sfinansowane przez MNiSW w ramach realizacji umowy nr 541/P-DUN/201