THE NEED FOR IMPLEMENTATION OF A TIGHT MONETARY POLICY AS A CONDITION FOR ACHIEVING LONG-TERM ECONOMIC GOALS

The article discusses the causes and consequences of inflation. In countries with a high level of development, prices remain stable at zero rates of economic growth. The rate of inflation in the economy of modern Russia remains quite high. Only in the last two or three years, their value has decreased to 5-5.5 % per year. It is well known that stable prices create conditions for the growth of investment and, ultimately, for sustainable economic development. High inflation rates negatively affect the amount of consumption, the dynamics of production volumes, investments, which extremely negatively affect the development of the national economy. There are many interpretations of the causes and consequences of inflation. It is quite interesting to consider the inflation of the well-known Austrian economist, a supporter of classical liberalism L. von Mises. He is a consistent proponent of a tight monetary policy and gold standard. He argues that the state regularly tries to use monetary policy to achieve its own political and economic goals, which often do not correspond to the goals of its citizens. Therefore, inflation from the point of view of citizens of society is a direct violation of the social contract. The situation of inflation can be defined as a “betrayal of public trust.” Inflation as a form of economic policy cannot be recognized as effective, since the state can not expect to achieve any long-term socio-economic goals. Tight monetary policy makes it more likely to expect to obtain necessary results.