Аннотация: The study looks at the inflation processes developing nowadays in several countries. Basing on prior research, the authors amply demonstrate the connection between different social and monetary institutes in stimulating the economic activity on the market as well as the consequences of the policy. Active monetary actions in order to support going bankrupt companies and households leads to higher inflation rates since higher wage growth would give workers more financial reserves to increase the demand, inflation surges again, which in turn would prompt workers to demand higher wages in order to offset the higher inflation. Enumerating the pros and cons of inflation the authors conclude that the current tough economic conditions require prudent policy in order to secure the public welfare.