Ministry of Education and Science of the Republic of Kazakhstan

Kazakh Economic University by name T.Ryskulov

COURSE WORK

Themes "Finance and Inflation: the relationship and interaction"

PREPARED BY:

Shakenov A.A,

2Nd year student

Faculty “International education programs”

Speciality “Finance”

CHECKED BY:

Tusseyeva M.K. Professor, Doctor of Economic science

2014

2014year

Plan:

Introduction

1 THEORETICAL FOUNDATIONS OF INFLATION………………………5

1.1 Relationship of Finance and inflation

1.2 Reasons for the origin of inflation and its consequences……………….……..7

1.3 Finance as a factor in inflation……………………………………………….12

2 ANALYSIS OF INFLATION AND ITS IMPACT ON MONEY TURNOVER IN KAZAKHSTAN……………………………………………...14

2.1 Legal frameworks for inflation

2.2 Analysis of the impact of inflation in the Republic of Kazakhstan for 2009-2011 . ……………………………………………………………………………..16

2.3 Contours of anti-inflationary policy in the future…………………………….18

3 BASIC FUNCTIONS OF THE RELATIONSHIP PROBLEMS OF FINANCE IN THE INFLATION ………………………………………….….20

3.1 Key issues and ways to improve the anti-inflationary policy in the Republic of Kazakhstan

3.2 Features of the anti-inflation policy of the National Bank of Kazakhstan…..23

CONCLUSION

LIST OF REFERENCES

Introduction

Relevance of the chosen topic. Recently , to be precise - from the end of the 90th year , the term " inflation " is firmly enough in the minds of Kazakh economists , financiers and entrepreneurs. It is now very difficult to find in Kazakhstan man who at least would not know about what " inflation " and how it threatens the state 's economy , entrepreneurs and ordinary citizens.

However, quite recently the official Soviet science proves that the existence of inflation in the socialist system , the planned economy and public distribution of goods is impossible in principle . And if it exists, it is the most insignificant and subtle forms.

In our time, when the principles of transparency and access to information have strengthened their position in society , the general public should know enough about inflation , but despite the abundance of information is not always reliable in the media on this topic , knowledge of the population about her superficial and inadequate.

The transition to a market economy relations sharply increased value of money. Problems become major money economy and the practical arrangements for the reconstruction of the national economy, and in theoretical studies . Therefore, despite a lively discussion of these issues in the pages of the economic press, their relevance has not diminished. The high cost of the analysis of inflationary processes , a large number of operating factors difficult to develop proper monetary policy. As experience shows, as well as other countries , the transition to market relations accompanied by a rapid rise in prices and the enhanced effect of inflationary factors .

It is important to assess whether the transition itself to a market cause inflation or deepening these relations previously accumulated inflationary potential gets its real expression . Obviously, in the conditions of market relations opportunities artificial curb inflation drastically reduced . However, inconsistency in the decisions on the transition to a market economy , some ill-conceived steps exacerbate existing difficulties , increase inflationary pressures .

Inflation is a complex socio- economic phenomenon . As an economic phenomenon , inflation has been around a long time. It is believed that it came almost with the appearance of money , the functioning of which is inextricably linked . However, if inflation occurs earlier , as a rule , in extreme circumstances, such as during the war, the state produces a large amount of paper money to finance its military expenditures , in the last two or three decades in many countries it has become chronic .

Need for objective evaluation of the performance of the state anti-inflationary policy and identification of erroneous actions in an attempt to reduce inflation to determine the relevance of the topic and the choice of direction of the course work .

The aim of the course work is a detailed study of the concepts of inflation and all its attendant concepts peculiarities of inflation economy , identification of erroneous actions in reducing inflation, develop proposals and recommendations on the most safe reduction of inflation ( using examples of inflationary policies of other countries ) .

Topics to disclose the following main tasks:

- Explore the history of the emergence of inflation;

- To investigate the nature and properties of inflationary processes , clarify their concepts , give a comparative description of their species;

- To consider the system of inflation indicators and factors causing these or other consequences for the economy, classify and discover their mutual ;

- To determine the impact of inflation on the market economy ;

- Examine the activities of public authorities to ensure a stable and declining inflation ;

- Identify the main reasons causing the inflation rate in the country;

- To determine the direction of anti-inflationary policy in Russia.

Object of study course work are inflationary processes in Russia , their impact on the monetary system and incomes , as well as the role of inflation in the modern market economy.

The subject of the course work are the results of inflationary processes in the country , features and methodology of evaluation, factors affecting the inflation rate , measures to deal with its consequences.

Theoretical and methodological foundation course work are the works of foreign and domestic economists and financiers , revealing different aspects of inflationary processes in different countries.