The concrete actions in the field of the prices can have short-term or even the emergency purposes, which can in the given concrete moment not coincide with other purposes, but at the end they always serve of the general purpose of state regulation - optimisation of rates both proportions of economic development and stabilisation of social system
The classical political economy examined the prices, freely developing in the market, as the main element of the mechanism of maintenance of balance between a supply and demand. However actually there was never of ideal general and complete freedom money appearing. All question in a degree and forms of restriction of free game of the prices. Even if to abstract from opportunities of arrangement of the manufacturers and sellers, during all history of capitalism it is possible to look after influence of the state on the prices.
The tariffs for services of state iron roads, mail, telegraph, sale of the foodstuffs from state stocks per poor harvest years, customs politics and indirect taxation essential image influencing on the internal price, - here the not complete list of measures of state price control for last 100 - 150 years.
The first world war which has begun after it depression and crisis, have served as the moment of changes in a history of state price control. K. Muller wrote in this occasion, that the political and economic shocks in the state and society have caused comprehension that in interests of the best functioning of a economy, more uniform distribution and avoidance of danger of revolutionary revolution it would be expedient, that the state has undertaken care of regulation of economic process and maintenance of the fair prices.
Attempts to adjust the prices in conditions of inflation and crisis by the foreign trade politics have appeared insolvent. To the middle of the 30-th years in many advanced countries with market economy the laws giving to the state powers on influence on the prices, down to their freezing were accepted, and the state measures on influence on the prices become a component of state regulation of economy.
The state measures on price control can carry legislative, administrative and judicial character. The laws, accepted by parliaments, create a legal basis of the relations between the economic subjects, and also between them and state in sphere money appearing. The complex of these laws represents the price right entering by a component into civil law. On the basis of this right the authorised state bodies carry out administrative activity on price control. In case of infringement of the laws guilty can be involved in the judicial responsibility.
Party fractions independent deputies bring in the administration bills of the prices, as well as on other economic questions, to parliaments or government, is direct measures on price control carry out the ministries of economy, finance and central bank. In a number of the countries there are ministries of trade, agriculture. They also render influence on money appearing. In many countries at the end of 60 - in the 70-th years ministry advice under the prices was created, they have is observant - consultative functions.
In each country at government or its separate bodies there are expert committees, where the known experts, and advice, in which they meeting the representatives of trade unions, unions of the peasants, dealers, businessmen and representatives of state bodies enter; the committees are called to advise state bodies on the prices and to express the opinion concerning the price administration bills.
Let's consider state price control in a historical and logic sequence.
The supervision over the prices is the primary form of state activity in this area. The business not only that from it began state price control; now supervision over the prices forms the basis, on which all state actions in this area are based. In supervision over the prices the central statistical managements are engaged. The independent researches of movement of the prices frequently will carry out the research centres of trade unions special commissions under orders of a management of parties, international organisations.
Overall objective of supervision behind the prices on the part of state bodies and social partners - change of growth of cost of life for definition of an index of annual nominal increase of wages and pensions, and also for finding - out of influence of a rise in prices on production costs and national competitiveness. The state can affect the prices, entering or cancelling quantitative and customs restrictions in foreign trade, entering in integration unions, changing the registration rate, varying the taxes, carrying out a currency issue etc. The indirect influence on the prices is rendered, in essence, by(with) all state regulating actions(shares), with what the purposes they did not serve.
The state intervention in process money appearing is carried out by the overestimate, authorised by governmental bodies, of production costs through inclusion in the cost price overestimated amortisation and deductions in other funds. As a result of it in the whole branches there is a situation, when “ the costs prop up the price ”, i.e. settlement (instead of valid) the production costs appear at all enterprises of branch as a result of the privileges, announced by government, are so high, that the increase of the prices becomes itself by the understood phenomenon, and as the privileges are distributed to all branch, internal branches the competition in conditions of a favourable conjuncture can not be a sufficient obstacle for a rise in prices.
Direct state intervention in process money appearing is the state politics of an establishment of the prices on the so-called excise goods.
The direct influence on formation of the prices is rendered with the state grants. One of kinds of such grants - price - provides decrease of the prices by special surcharges to the manufacturer or consumer.
The direct influence on the prices and leadership in the prices has a place in branches, where the share of the state in consumption of the goods and services is significant, for example, in military industries, in a number down-branches of construction. The governmental bodies, being by the constant buyers or customers of the certain kinds of the goods and services at private concerns, establish under the arrangement with the partners “ the concrete prices ”, which become then base prices for branch.
Effective means of price control is the tax to additional cost. The manufacturers include this tax in the price of the goods or service, and difference of change of the rates of this tax directly influences the prices.
The special direction of state economic politics is the state influence on the foreign trade prices. State encouragement of export, clearing of the exporters of the taxes (return of the taxes), and in some countries - the export grants, granting of the soft loans and transport tariffs by an essential image are reflected in conditions of a price competition in the world market.
Establishment of the prices on mineral raw material extracted in state mines, on the electric power from state power stations and railway, mail-telegraphic tariffs - example of fixing of the prices on the goods and services state sector.
These is artificial undercharges and the tariffs promote decrease of production costs in a private enterprise and increase of national competitiveness for the account is artificial of the lowered profitability or deficiencyof these objects of a state ownership.
Fixing of the prices or establishment of limits of their increase in public sector - typical means of administrative economic regulation. It is seldom applied and, as a rule, in conditions of a market economy is inefficient in long-term and even intermediate term aspect. It is used more often in exclusive cases as a means of easing of social intensity.
National bodies carry out the control above the prices for the certain kinds of the goods.
Examples can serve an establishment of the prices on coal and black metals by the European association of steel, annual establishment of procurement prices on agricultural products in the European union, participation of the countries in the international conferences, organisations on separate kinds of the goods, tariffs for an airline traffic.
One of the difficulties of the questions of economic politics is the management of inflation. In the world there are not enough of countries, where in second half 20 centuries there was no inflation. Though it has come on change of former illness of market economy, which has become obviously to weaken, - cyclic crises.
The inflation is a depreciation of money, decrease of their buying power. Usually inflation has in the basis not one, and some interconnected reasons, and are shown it not only in increase of the prices - alongside with open, by price inflation has a place latent, or suppressed, inflation shown first of all in deficiency, deterioration of quality of the goods. In literal translation with the Latin inflation means “swelling”, i.e. overflow of channels of the manipulation by the superfluous paper money which has been not supplied with the appropriate growth of commodity weight.
The reasons of inflation are diverse. Usually in a basis of inflation the discrepancy of money demand and commodity weight - demand for the goods lays and services exceeds the sizes goods turnover, that creates conditions that the manufacturers and suppliers lifted the prices irrespective of a level of costs. A disproportion between a supply and demand, excess of the incomes above the consumer charges can be deviated by deficiency budjet (charges of the state exceed the incomes); by excessive investment (volume of the investments exceeds opportunities of economy); by outstripping growth of wages in comparison with growth of manufacture and increase of productivity of work; by an any establishment of state-set prices causing skews in size and structure of demand; by other factors.
Let's refer as an example to a sharp aggravation of deficiency state budjet in Russia in the second half of 80-th years (1985-1989 years - break between profitable and account parts of the state budget has grown, with 18 up to 120 billionrub., or from 3,5 % up to 19 % to the national income of the country). The increased deficiency has put huge harm to the money manipulation, has urged on inflation. The unjustified money payments sharply have worsened a situation in the consumer market.
The reasons of occurrence of inflation can be both internal, and external. To the external reasons concern, in particular, reduction of receipts from foreign trade, negative results of the foreign trade and payment balances. The inflationary process in Russia strengthened fall of the prices in the global market on fuel and colour metals making important clause of our export, and also adverse conjuncture in the grain market in conditions of significant import grain. In Hungary, which economy in the greater measure depends on a condition of foreign economic relations, just the external factor (deterioration of conditions of international trade, increase of the external debt) played a hardly probable not determining role in amplification inflationary processes. Thus the politics of escalating of export and restraint of import reduced growth internal, wholesale and consumer costs.
The inflationary rise in prices alongside with the marked factors is caused by the deeper reasons having basic character. Let's consider on an example of Russia.
First, as a rule, one of sources of inflationary processes the deformation of economic structure expressing in essential backlog of branches of consumer sector at obvious super-changed development of branches of heavy industry serves and is especial of military mechanical engineering.
Secondly, inability to overcome inflation is deviated by lacks of an economic mechanism. In conditions of the centralised economy practically there was no feedback, there were no effective economic levers, which were capable to adjust a parity between money and commodity weight; as to administrative terminators, they “worked” insufficiently effectively. In system of financial planning state plan played a determining role, instead of Ministry of finance and not the State Bank, which “worked” under it, supporting the scheduled tasks financial and money resources without any restrictions.
Becoming traditional the politics of high rates of economic development ignored real resource opportunities. To support rates, the capital investments were constantly increased. In result the growth of consumption restrained; the efficiency of capital investments fell that negatively had an effect for economic growth and current manufacture. The means for new technology did not suffice, and continuous growing of fund of accumulation did not give desirable result. A problem died any more in amount of a capital investment, and in their efficiency, structure to reconstruct which economic mechanism prevented.
The contradiction and deficiencies deleted there are more means, and the financial and budget terminators were very weak or practically were absent. Unbalanced took place not only in the consumer market. Its basis - increasing disproportion in the manufacture, strengthening financially - financial not of balance, defects in system of planning, in the mechanism of the money manipulation, in absence of antiinflationary regulation.
Examining the reasons of inflation, the economists will carry out distinction between two its kinds - “ by inflation of the buyers “ (inflation of demand) and “ by inflation of the sellers “ (inflation of costs). In effect, it is two, as a rule, interconnected, but unequivalent reasons of inflation: one lays on the part of demand (surplus of money resources at the buyers), another - on the part of the offer (growth of industrial costs).
Depending on character of inflation and rates of increase of inflationary processes distinguish the following types of inflation:
1) Slow inflation, for which the rather low rates of a rise in prices, approximately up to ten or several percents per one year are characteristic. Such inflation is inherent in the majority of the countries with the advanced market economy, and it is not represented by something unusual. The average level of inflation on the countries of the European community has made for last years about 3 - 3,5%.
2) Galloping inflation is difficult in ruling.The rate of its growth is expressed usually in two-place figures. Such high rates in the 80-th years were observed, for example, in many countries of Latin America, some countries of Southern Asia. The galloping rise in prices shows itself unequally and has not the strictly designated quantitative parameters. The inflationary processes depend on a level of development of the country, social economic structure unsimilar regulation of price processes. In the period after war - the period of capitalism has gone through two large waves of inflation: at transition from military economy of a market type (1945-1952) and under influence “ of petroleum shocks ”, is sharp shocked all structure of the world and internal prices (1974-1981). But it was possible to western countries to stop inflationary processes, using various methods of antiinflationary regulation. For the small countries, for example of Sweden, it was important to avoid imported inflation, for what the increase of the prices of national currency was used. Other countries resorted to methods of restraint of inflation by means of money-credit politics.
3) The greatest danger represents super-inflation. Its conditional boundary - monthly (within three-four months) rise in prices more than 50%, and annual will be expressed four numbers in figures. The feature super-inflation that it appears practically unguided; the usual functional interrelations and habitual levers of management of the prices do not work. On complete power the printed machine tool works, the gamble develops mad. Manufacture will be disorganised. To stop or to brake super-inflation it is necessary to resort to extreme measures. But there is no unequivocal representation about that, how to struggle with super-inflation. The rather inconsistent recipes are assumed various, quite often.
To outstrip inevitable, increase, expected by all, of the prices, the owners of “hot” money aspire as soon as possible gets rid of them. In result is developed great demand; those goTo outstrip inevitable, increase, expected by all, of the prices, the owners of “hot” money aspire as soon as possible gets rid of them. In result is developed great demand; those goods are bought up first of all which can serve a means of partial preservation of the savings (real estate, subjects of art, precious metals). The people work under pressure “inflationary crisis ”, and it grow a rise in prices, and the inflation begins to feed itself.
Classical example super-inflation - conditions which has been usual in Germany and a number of other countries after the First World War. In Germany in 1923 the level of a rise in prices was estimated 10 numbers and 12 numbers by numbers; the wages should be spent immediately, for within day of the price on products raised repeatedly.
The process of inflation is inconsistent. On the one hand, the money profits are increased, the capital investments extend, and with another - the rise in prices conducts to depreciation of the unused capital. Win not everything, and, first of all strong firms having the modern equipment, perfect organisation of manufacture. In the best rule(situation) there are social groups living on the not fixed incomes, if their nominal incomes will grow by rate overtaking a rise in prices.
From inflation the people who take money on credit can win, if not is stipulated, that percent for the credit should take into account an inflationary rise in prices.
But whichever there were positive functions of inflation, leaving from under the control and even remaining rather weak, adjusted, the inflation renders on a course of economic development the whole complex especially of negative phenomena.
To negative consequences of inflationary processes concern:
- Decrease of the real incomes of the population;
- Depreciation of the savings of the population (the increase of percents on the contributions, as a rule, does not compensate fall of the real sizes of the savings);
- The loss at the manufacturers of interest in creation of the qualitative goods (is increased release of the goods of poor quality, manufacture of the rather cheap goods) is reduced;
- Restriction of sale of agricultural products in city by the rural manufacturers by virtue of fall of interest, in expectation of increase of the prices on the foodstuffs;
- Deterioration of conditions of life mainly at the representatives of social groups with the firm incomes (pensioners serving, students, which incomes are formed for the account state budget);
- Easing positions of imperious structures (is reduced trust to the programs and measures planned and carried out government).
The management of inflation represents a major problem money-credit and in the whole economic politics. The ways of management are ambiguous, are inconsistent on the consequences. The range of parameters for realisation of such politics can be rather narrow: on the one hand, it is required to constrain growth of an inflationary spiral, and with another - to support stimulus of manufacture to create conditions for saturation of the market by the goods.
The management of inflation assumes use of the complex measures assisting in a certain measure to combine an insignificant rise in prices with stabilisation of the incomes. The tools of management of process differ depending on character and rate of inflation, features of economic conditions, specificity of an economic mechanism of the different countries.
For antiinflationary regulation two are used such as economic politics:
1) Politics directed on reduction of budget deficiency, restriction of credit expansion, restraint of money issue. In conformity with material the recipes apply targets - regulation of rate of a gain of money weight in the certain limits - according to rate of growth of a total national product
2) Politics of price control and incomes having by the purpose to co-ordinate growth of earnings with a rise in prices. One of means serves index of the incomes determined by a level of a minimum conditions of life or a standard consumer basket and connected with dynamics of an index of the prices. For restraint of the undesirable phenomena the limits of increase or freezing of wages can be established, to be limited distribution of the credits etc.
The influence on inflationary process in conditions of a sharp rise in prices requires special measures. So, for elimination of consequences “ of a petroleum shock ”, struck on economy of USA in second half of 70-th years, the registration rates were increased, the requirements to the sizes of reserve funds are amplified, the system of the taxation is stipulated. To lower rates of an inflationary rise in prices it was possible not at once: from 13-14 of % in 1979 they have decreased to 4 % after about three years - in 1982.
As the experience testifies, to stop inflation with the help of one organisational measures rather difficulty if not to tell it is impossible. The structural reform directed on overcoming of disproportion’s, that has arisen in economy is necessary for this purpose.
The concrete methods of restraint of inflation, “dose” and sequence of application of means, attracted for treatment, depend on statement of the correct diagnosis. To put the diagnosis - means, to determine character of inflation, to allocate the factors, basic and connected to them, which makes the growth of inflationary processes. In this case it is not necessary to expect for any ready circuits, and series of extreme measures to finish with inflation. Each inflation is specific and assumes application of such recipes, which correspond to character and depth of “disease”.
Constant consequence in particular of inflationary process is the unemployment. By virtue of importance of this problem the state accepts the special measures for regulation of the market of work.
The market of work - important sphere economic and social - political life of a society. In the market of work labour receives an estimation cost, the conditions of its employment, including size of wages, working conditions, opportunity of reception of education, professional growth, guarantee of employment etc are defined. The market of work reflects the basic tendencies in changes of employment, its(her) basic structures (branch, vocational, demographic), i.e. in a public division of labour, mobility of a labour, scales and changes of unemployment.
The unemployment is a social economic phenomenon, at which the part of a labour (economically of active population) is not engaged in manufacture of the goods and services. The unemployed alongside with engaged form a labour of the country. In real economic life the unemployment acts as excess of a labour above demand for it(her). To the unemployed, according to statistics of many advanced countries, the persons who have been not engaged on the moment of realisation of interrogation about the status of their employment, undertaking attempts concern to find work within the previous four weeks and registered on labour exchange.
Heavy for the countries of West were 30 years of our century. In USA the rate of unemployment has reached 25%. The diagram showing thedynamics of a rate of unemployment in USA for 100 years is rather curious (1890-1990).
If the share of the unemployed makes 1-3 % in general army of work, not it is accepted to count employment insignificant. Especially dangerous in social sense not employment (absence of work within 40 weeks and more) is long chronic.
It is important to emphasise, that to the unemployed usually carry not only dismissed on the various reasons, but also persons voluntary left works and undertaking attempt to find new. The structure of unemployment for its reasons includes four basic categories of a labour:
1) Lost work as a result of dismissal;
2) Voluntary left work;
3) Come on the market of work after a break;
4) For the first time come on the market of work.
The parity of these categories depends, first of all, on a phase of a business cycle.
The monthly average rate of unemployment within the given year pays off under the formula:
UE*100 of %
Lue = ------------------
LFc,
Where Lue - level (norm) of unemployment, %; UE - monthly average number of the unemployed; LFc - number of a civil labour.
There are some concepts treating a phenomenon of unemployment. In Mark’s of the theory it usually connect to process of accumulation of the capital, at which the requirement for alive work (variable capital) is increased slower, than in machines, equipment (constant capital). In western economic science the point of view dominates, according to which the unemployment in the basis reflects an economic feasibility of use of resources, just as, say degree of loading of capacities reflects expediency and efficiency of use of a fixed capital. A so-called natural rate of unemployment reflecting structural disproportion in the market of work (between structure of a supply and demand of a labour on qualification, by demographic and other criteria). To natural unemployment carry also so-called friction unemployment connected mainly to voluntary transition of the workers from one work on another and to seasonal fluctuations in demand for a labour.
In USA in the 60-th years as a natural rate of unemployment the parameter in 4,3 %, in 70-th - already 6,6 %, in 80-th - about 7% was considered. The excess of unemployment above a natural level is determined in the basic cyclic factor, i.e. condition of a conjuncture in the country.
Changes of unemployment is influenced, besides demographic factors, with changes in structure of economy, condition of foreign trade and export of the capital, scales of the military charges, economic and social politics of the state.
Owing to variety of internal regulators of the market of a labour, and also by virtue of social importance of its effective functioning the market of work requires the qualified regulation.
