Incomes of the Russian Population in the Conditions of Inflation

Abstract:

The article investigates the influence of the money incomes of the population on the development of inflationary processes in Russia. As the analyzed indicators, the author uses the average per capita income of the population, the average monthly salary, the average size of pensions. The article shows that the increase in salary most considerably influences the rates of inflation as its growth acts as the reason for both demand-pull inflation, and cost-push inflation. It is noted that the influence of an increase in monetary income is more evident in the conditions of full employment of resource, which, in turn, is a characteristic of the modern Russian economy. In these conditions, the increase in monetary income, through the growth of aggregate demand, can positively impact on the development of national production without rising inflation rates. The article analyses the interrelation of the inflation rate and indicators characterizing the money incomes of the population of Russia for the 20-year period. At the same time, the author studies the interrelation of the rate of inflation and the real income of the population. I give an assessment of the use of the monetarist theory as a basis for overcoming inflationary processes in the Russian Federation. The author concludes that in the conditions of the reached low rates of inflation, the transition to economic policy directed on the stimulation of aggregate demand as a necessary condition for the development of the national economy as well as for the achievement of economic growth is efficient.