EDUCATION AND EDUCATIONAL SERVICES IN MODERN UZBEKISTAN

Аннотация

Inflation is a sustained increase in the general price level, accompanied by a decrease in the purchasing power of money. Under normal conditions, it can be moderate and even stimulate economic growth, but during periods of global crises, inflation often spirals out of control, causing serious harm to the economy and social stability. Global crises such as the COVID-19 pandemic, energy shocks, geopolitical conflicts, or economic sanctions intensify inflationary pressures on national economies around the world. Keywords: Inflation, Global crisis, Economic crisis, Financial instability, Causes of inflation, Government regulation. Inflation is one of the key macroeconomic phenomena that has a direct impact on the standard of living, the stability of the financial system, and the economic policy of the state. Before delving into this global topic, it is essential to define the concept of “inflation”. In the book Economics by Paul Samuelson and William Nordhaus, inflation is defined as “a sustained rise in the general level of prices”. Samuelson emphasizes that inflation reduces the purchasing power of money and affects the economic decisions of both consumers and producers. John Maynard Keynes viewed inflation as a result of excessive demand, especially under conditions of full employment. His definition was as follows: “Inflation is an excess of aggregate demand over aggregate supply, caused by an increase in the money supply in the economy”. https://scientific-jl.org/obr Выпуск журнала №-71 212 Часть–7_ июня–2025 ОБРАЗОВАНИЕ НАУКА И ИННОВАЦИОННЫЕ ИДЕИ В МИРЕ 2181- 3187 “Inflation is always and everywhere a monetary phenomenon, caused by a faster growth in the quantity of money than in the volume of production,” believed Milton Friedman, emphasizing the role of the central bank and the money supply. In Volume I of Capital, Karl Marx argued that inflation is the result of the depreciation of paper money that is not backed by a corresponding amount of goods. Based on the above, a more general definition of the studied term can be provided: Inflation is a process in which the money supply in a country's economy increases, and the purchasing power of that money declines. One of the main causes of inflation during crises is disruptions in global supply chains (Fig. 1). When the systems of production and logistics are disrupted, markets experience shortages of goods, especially imported ones, which leads to price increases. In addition, such situations are typically accompanied by rising prices for essential resources such as energy and raw materials, which increase production costs- costs that are ultimately passed on to consumers. Factors Contributing to Inflation Growth During Global Crises Increase in Disruption of supply Rise in energy Monetary government chains prices expansion spending Global crises are often accompanied by During geopolitical During times of crisis, border closures, a conflicts, oil and gas governments often Central banks, decline in production supplies can drop increase spending to aiming to stimulate and transportation sharply. This leads to support the the economy, lower volumes, which leads an increase in fuel population and interest rates and to shortages of goods prices and, businesses (for increase the money and rising prices. For consequently, in the example, through supply, which, when example, during the cost of all production benefit payments, supply fails to keep COVID-19 pandemic, and logistics subsidies, or tax up with demand, microchip production processes. The energy reductions), which can also fuels inflation. decreased, which crisis in Europe in heighten inflationary affected prices in the 2022 is a clear pressure due to rising automotive and example of this. demand. electronics industries. https://scientific-jl.org/obr Выпуск журнала №-71 213 Часть–7_ июня–2025 ОБРАЗОВАНИЕ НАУКА И ИННОВАЦИОННЫЕ ИДЕИ В МИРЕ 2181- 3187 Fig. 1. Factors contributing to inflation growth during global crises. Another contributing factor is active government intervention in the economy through stimulus measures. To mitigate the effects of a crisis, governments often increase public spending, while central banks lower interest rates and expand the money supply. These measures are intended to support demand and businesses, but in conditions of limited supply, they can lead to market overheating and a sharp spike in prices. A further factor during crises is the weakening of national currencies, especially in countries heavily dependent on imports. When exchange rates fall, imported goods and services become more expensive, which automatically drives up the general price level within the country. The consequences of inflation under such conditions affect all aspects of life. First and foremost, the population suffers: real incomes decline, particularly among low-income groups, as prices for essential goods – such as food, fuel, and utilities – rise faster than wages. High inflation also negatively im