Will Banks Continue as Generators of Inflation?

Abstract

The USSR economy is going through one of the most difficult periods in its history. Crisis phenomena are gripping newer and newer spheres and are gaining momentum. The mounting commodity-monetary imbalance has caused the disintegration of economic relations, the curtailment of production volumes, the lowering of the population's living standard, and as a consequence, increasing social confrontation in society (Russia and Germany experienced similar situations during and after World War I, as did many Latin American countries from the 1960s to the 1980s). What is more, as a result of the administrative policy of holding down prices, enterprises and the population accumulated an amount of surplus money that is substantially greater than the volume of annual commodity turnover. Its simultaneous entry into commodity markets leads to hyperinflation and the disintegration of the economy into individual barter economies.