Approximate analytical solution of the inflation kinetic model
Keywords:
kinetic models, modeling of inflation processes, money supply increase, approximate analytical solutionAbstract
Purpose and subject of research
The aim of the article is to highlight the mathematical formalization basic principles of the approximate inflation kinetic models solutions, the exact solutions of which are obtained only by numerical integration.
Research methodology
The basis in achieving this goal is the detailed analysis of the numerical solutions integral curves, which allowed to identify and formulate changes in the behavior of numerical solution, and caused the changes in the model parameters values.
Value results
An approach described in the article expands the range of possibilities in the modeling of inflation processes, namely: the prediction of their quantitative level for particular conditions; the creation of alternative development scenarios; the definition of anti-inflation measures necessary to achieve the optimal rate of inflation for the economy. Approximate solutions in the analytical form based on exponential functions are offered. The estimation error of the abovementioned solutions is implemented. The formulas of the peak significance computation of the inflationary surge, which took place in the result of money supply increase, are obtained.
Conclusions
The approximate analytical solutions of the model are made, that facilitates the transition to the next quality level of the inflation processes development within the inflation kinetic model.
Key words: kinetic models, modeling of inflation processes, money supply increase, approximate analytical solution.
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