Determinants of inflation in various macroeconomic schools

Тhe maintaining of a low and stable inflation is essential for sustainable economic growth. There is general consensus among macroeconomic schools and their supporters that high inflation rates have a negative impact on economies. Continuous maintenance of stable and low price level creates a more favorable macroeconomic environment for the investments and for the long-term sustainable economic development. For R. of Macedonia, the maintenance of price stability is the fulfillment of one of the Maastricht criteria - a precondition for its entry into the European Union. Therefore, the purpose of this paper is through historical-comparative analysis and methods of induction and deduction to note inflationary main determinants in the light of various macroeconomic doctrines, with special focus on Macedonia.
Keywords: price level, sustainable economic growth, macroeconomic environment, convergence.