Inventory Cycles in Countries of Open Economy

Abstract

With the help of methods of the theory of macro-economic and systemic analysis the article researches the conditions affecting shaping of Kitchen inventory cycles in countries with different levels of open economy development. Among these conditions the principle ones are specialization of investment benefits and human capital, issuance of money in circulation, the level of business activities, behavior of real interest rates and current exchange rates at the end of inventory cycles. Conditions were identified that can help countries with developed economy get rid of high inflation rate and get stable commercial and non-profit-making excess earnings on constant demand on their currency. Interrelation between operations taking place in inventory cycle phases, both on home markets of countries and on foreign currency markets were described in detail. Key results of business activities in countries with different levels of economy development were provided. By analyzing versions of economy development of countries after finishing each regular inventory cycle it could be possible to identify those, whose use can provide in each successive inventory cycle a growth in labour productivity of applied investment profits and human capital to attain the highest level of specialization and technological sovereignty of the country.