The Interrelation of the Supply and Demand Factors in Ensuring an Intensive Type of Economic Growth

The article examines the influence of supply and demand factors on an intensive type of economic growth in the Russia and describes some basic models of economic growth. The author notes that in modern conditions the provision of an intensive type of economic growth in the country is associated with solving the problem of new industrialisation, and shows the shortcomings in implementation of the latter. The author stresses the importance of the factors of aggregate demand in ensuring economic growth and argues that current state economic policy takes them into account insufficiently. The paper advocates that a significant decrease in inflation in recent years resulted from a decline in total demand in the national economy accompanied by low rates of its development, limited investment activity, a fall in real incomes. The article analyses the relationship between changes in the level of inflation, nominal cash incomes of the population, investments in fixed assets and the physical volume of GDP. The author concludes about the need to take appropriate state measures in the field of monetary and financial policy aimed at the realisation of supply and demand factors that are capable of providing an intensive type of economic growth in Russia