New Approach to Inflation Phenomena to Ensure Sustainable Economic Growth

Stasys Girdzijauskas, Dalia Streimikiene, Ingrida Griesiene, Asta Mikalauskiene and Grigorios L. Kyriakopoulos
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Stasys Girdzijauskas: Institute of Social Sciences and Applied Informatics, Kaunas Faculty, Vilnius University, Muitines 8, LT-44280 Kaunas, Lithuania
Dalia Streimikiene: Institute of Social Sciences and Applied Informatics, Kaunas Faculty, Vilnius University, Muitines 8, LT-44280 Kaunas, Lithuania
Ingrida Griesiene: Institute of Social Sciences and Applied Informatics, Kaunas Faculty, Vilnius University, Muitines 8, LT-44280 Kaunas, Lithuania
Asta Mikalauskiene: Institute of Social Sciences and Applied Informatics, Kaunas Faculty, Vilnius University, Muitines 8, LT-44280 Kaunas, Lithuania
Grigorios L. Kyriakopoulos: School of Electrical and Computer Engineering, National Technical University of Athens, 15780 Zografou, Greece

Sustainability, 2022, vol. 14, issue 1, 1-21

Abstract: The problem of inflation is crucial for ensuring sustainable economic growth of the country. In the broadest sense, the economic dimension of sustainable development represents the general economic health of the country. Such macroeconomic indicators as unemployment and inflation rates are the main economic indicators of sustainable development. This article discusses the historical aspects of inflation development and the attitudes of economists towards it. The article presents a new approach to inflation and analyses the main reasons for its formation by developing a new analytical model of aggregate inflation. Based on new analytical model, the theoretical analysis of the formation of an economic bubble is provided based on saturation phenomena and its micro and macroeconomic implications are discussed. The main input of this paper is the creation of an extended (detailed) inflation model representing the main drivers of inflation and therefore contributes to the concept of controlled economic growth, which is necessary to ensure sustainable economic growth of the country.

Keywords: sustainable economic growth; demand-driven inflation; saturation paradox; general interest model; inflation bubble (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:1:p:518-:d:717422

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