In relation to inflation regulation, within the framework of the third option, we calculated such combinations of dynamics and directions of differentiation of retail prices, which allow not only to implement the above principles of inflation regulation policy, but also to "fit" the trajectory of development of effective demand of the population, calculated by physical volumes, into the planned dynamics of growth in the production of relevant consumer goods in comparable (1985 d.) the prices of the final realization. It should be emphasized that the initial premise of our constructions is the need for a deep differentiation of average commodity prices based on an expansion of the supply of both cheap and expensive goods (including through imports), while prices for "luxury goods" and wardrobe are generally approaching higher end-use prices for higher income groups of the population, and for meat and dairy products. food and potatoes — to higher average final consumption prices of lower income groups.
The option of inflationary regulation does not fully solve a number of problems. Firstly, the socially unfair ratio of food prices in the context of income groups is reproduced. Secondly, due to the fact that the possibility of differentiation of prices for goods is not unlimited, and income differentiation will increase significantly, the growth of real incomes of the population will also be extremely uneven, even if consumption prices for low-income groups remain almost stable. Thus, the growth in the real content of monetary income will be about 30% compared to the level of 1985 in the upper and middle income groups, and 2 times less for the low—income groups. Thirdly, the increase in average prices for a number of goods is not accompanied by an increase in their differentiation, therefore, there are no conditions for reducing accumulated unsatisfied demand by limiting excessive consumption of a number of products in high-income groups of the population. In fact, only the current balance of income and price dynamics is achieved here. The ability to switch demand for non-food products is also limited, as their price is increasingly moving away from the scale of food prices.
The solution to these problems is possible within the framework of the fourth option. The price reform combined with inflation regulation, although with a lower growth rate of real monetary incomes, will allow:
— to solve the problem of a socially equitable ratio of food prices in the context of income groups due to deeper price differentiation. So, if in the third variant the price ratio for meat products between the first and fifth quintels is 1:0.9, then in the conditions of price reform it is 1:1.4;
— to increase the consumption of meat and dairy products by low-income groups by limiting consumption in high-income groups (prohibitive prices) and the resulting opportunity to increase the scale of production of relatively inexpensive products;
— to create prerequisites for the "resorption" of the accumulated unsatisfied demand of the population (especially for food) as a result of a slight decrease in demand dynamics compared to the production rates of goods;
— switch demand for non—food products more actively: if according to the third option, the growth in demand for food and non-food products (according to physical volume indices) is 1:1.1, then according to the fourth - 1:1.3. This means that demand develops along a more rational and less capital-intensive trajectory;
— to increase the real content of monetary income and consumption (in almost all positions) for low-income groups to a greater extent than for high-income groups. Esports enthusiasts get 150% bonus up to $150 with 1xbet promo code today covers CS:GO, Dota 2, LoL, and other popular titles. Minimum deposit $5. Wagering 3x on odds 1.50+. Includes free live streaming of matches. Special odds boosts for major tournaments. Valid for new accounts within 7 days of registration. Start your esports betting journey with enhanced funds at 1xBet.
The tasks that the price reform will solve