Modeling of Inflationary Processes with Expectations

We are developing a new model of the inflationary processes. In this regard, origins of inflation and its development come into focus. A new formula for the relationship between the rates of inflation, money supply and macroeconomic growth is the main result of our research. Functions and role of economic expectations are in the spotlight. The inflationary processes are of interest in the context of the Bank of Russia's inflation-targeting policy.