"Competitions BYuT and Party of Regions in populism untwist the inflation mechanism" - consider Nikolaev Unpshniki

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"Increase of a minimum level of salaries and pensions won't have positive consequences for lower-income strata as will lead to the next rise in prices", - the member of the Central Wire of the Ukrainian people's party, the honored economist of Ukraine, the corresponding member of Academy of economic sciences, the representative of the UNPNikolaev regional organization considersAlexey Miroshnichenko.

"The increase in social expenses in the conditions of economic recession is the traditional recipe for the states with the market economy which purpose is the increase in expenses of the population at purchase of domestic goods which traditionally are more available at the price, and, thus, - assistance to an economy exit from a crisis state", - the expert notes.

In his opinion, "use of it "axiomatic approach" in the conditions of an economic situation which developed in Ukraine, won't yield expected results. Confirmation of it is that in the countries with the developed market economy economic recession is accompanied by decrease in retail prices from - for the competition in the conditions of consumption reduction, in Ukraine throughout the entire period of crisis the resistant tendency of growth of retail prices is observed. Besides, in the conditions of Ukraine the increase in expenses leads not to growth of consumption of domestic goods, and to increase in consumption of cheap import. Thus, not development of national economy through increase in consumption of goods of a domestic production, and assistance to recovery from the crisis of China, Turkey, Poland, other countries will be a consequence of increase of social expenses, and Ukraine will get only next surge in inflationary processes, as well as after partial payment one thousand hryvnias of savings the governmentYu. Tymoshenko".

"Populist competitions BYuT and Party of Regions too expensive manage to economy.For the population reduction of an exchange rate of national currency by 1,5 times became the real shock, at the same time since July, 1999 when the exchange rate about 5 hryvnias for US dollar was established, only according to official figures consumer prices in Ukraine grew almost by 3,5 times. That is decrease in real cost of national currency considerably advances decrease in an exchange rate, and any populist speculation can become the catalyst of process of a hyperinflation, stop which to such Government and Parliament will be not on forces", - Miroshnichenko emphasized.

"The economy of Ukraine in 90-x already endured such process when the Verkhovna Rada on request of the left majority tried to compensate a rise in prices increase in salaries and pensions, but each increase in social expenses led to increase in the prices twice - by 4 times, thereby gathering the population" even more, - the economist reminds.

"Increase of social expenses in such conditions is possible only as a result of development of real sector of national economy, to reach which it is possible only under conditions of realization of a complex of actions on restriction of import and development of production and consumption of a national product", - the representative of the Nikolaev regional organization of the Ukrainian people's party emphasized.

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