The Impact of Inflation Volatility on an Enterprise’s Innovation Strategy
Alexander Dikiy1, Elena Lepyokhina2, Yurii Nikolaienko3, Maxym Kochevoi4, Olha Kolomina5, Olena Shuplat6

1Alexander Dikiy*, Department of International Economic Relations and Economic Theory International University of Business and Law, Kherson, Ukraine.
2Elena Lepyokhina, Department of Marketing, International University of Business and Law, Kherson, Ukraine.
3Yurii Nikolaienko, Department of Finance, Banking and Insurance, Chernihiv National University of Technology, Chernihiv, Ukraine.
4Maxym Kochevoi, Department of Administrative Management and Market Problems, Odessa National Polytechnic University, Odessa, Ukraine.
5Olha Kolomina, Department of Management of Foreign Economic and Innovation Activities, Odessa National Polytechnic University, Odessa, Ukraine
6Olena Shuplat, Department of Corporate Finance and Controlling, SHEE “Kyiv National Economic University named after V. Hetmana”, Kyiv, Ukraine.

Manuscript received on September 15, 2019. | Revised Manuscript received on 24 September, 2019. | Manuscript published on October 10, 2019. | PP: 193-197 | Volume-8 Issue-12, October 2019. | Retrieval Number: L35461081219/2019©BEIESP | DOI: 10.35940/ijitee.L3546.1081219
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Abstract: The objective of the study was to determine the effect of inflation volatility on an enterprise’s innovation strategy. The study showed that increasing inflation leads to a decrease in the stationary level of potential output, as well as to a decrease in the rate of economic growth in the process of transition to a stationary state. A formula is proposed for calculating the total effect of inflation on the level of enterprise output. The negative impact of the inflation rate on the welfare of economic agents was revealed, which is expressed in the fall in their equilibrium consumption level. Higher-income countries have been shown to suffer more from high inflation than poorer countries. All conclusions made in the analysis of the dynamic model of the impact of inflation on potential output are verified based on econometric modelling using methods and models for panel data: models with fixed effects, models with random effects, and a generalized method of moments. Moreover, the obtained empirical results are stable concerning changes in the specification of the equation and estimation methods.
Keywords: Enterprise, Inflation, Innovation, Strategy, Volatility.
Scope of the Article: e-Commerce