The Influence of Inflat on Factors on Monetary Pol cy In Roman a

Inflation can be defined as increases in the general price level, both goods and services, under the purchasing power decreases. Inflation is present both at the consumer level and at the macroeconomic level. Inflation has both positive and negative influences on economic growth, the population, but also on businesses. A high inflation slows economic growth, hyperinflation induce recession and at a moderate level, inflation generally beneficial trains. But most times it cause negative effects and that people have made some special control policies and stop the inflationary phenomenon. Due to negative consequences on economic and social body, inflation is a major objective of macroeconomic policy in all market economy countries. Therefore current policies to combat inflation were be designed to halt inflation and at the same time allowing economic growth and limiting unemployment. Inflation targets established for 2008-2010 has been proved correct and efficient. The National Bank must continue his efforts to reduce inflation in a realistic pace. It is necessary to apply direct inflation targeting, to avoid sudden shocks caused by changes in monetary policy stance and currency policy should allow the real exchange rate of the national currency.