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International Theoretical Science Journal
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DOI 10.34229/KCA2522-9664.25.1.11
UDC 30.101.541-336.7
B.B. Dunaev1


1 State Educational-Scientific Establishment “The Academy of Financial Management,” Kyiv, Ukraine

bbdunaev@ukr.net

INFLATION DYNAMICS IN THE COUNTRY’S ECONOMY

Abstract. The functions of the dependence of inflation and the norm of cash quantity on the interest rate of the Central Bank and normalized real GDP are determined. Normalized real GDP is expressed by the ratio of real GDP to the inflation-free quantity of cash. It is shown that each technological mode has its own velocity of money circulation, interest rate, the norm of the quantity of cash, and inflation in a certain range of changes in normalized real GDP. The nomogram of the dependence of the cash quantity rate on the normalized real GDP at the available interest rate is constructed. The nomogram of the dependence of inflation on the interest rate at the available normalized real GDP of developing and underdeveloped economies and the nomogram of the dependence of inflation on the interest rate at the available normalized real GDP of industrialized and developed economies have been constructed. An economic and mathematical model of inflationary regulation of economic growth has been developed. The inflation regulation of the economic growth in Ukraine in 2025–2026, according to statistical data of 2022–2023, has been modeled. It is shown that inflationary regulation allows for an increase in real GDP growth in two years by 1.9 times compared to growth with inflation targeting the interest rate.

Keywords: economy, inflation regulation, normalized real GDP, market, equilibrium, labor, capital, money, credit multiplier, interest rate, currency, cash rate, inflation.


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