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Globalisation contributes to stabilisation of monetary policy of countries, achievement of price stability and decrease rates of inflation. There is no clear generally accepted concept for "inflation". A number of experts consider inflation to be a complicated multisided process, which depends not only on economical but also on social and political reasons. One of the main aims of state governments and central banks of the majority of world countries is the decrease of inflation due to its negative effect on the economy. Researches have shown that in developed countries inflation higher than 3% leads to substantial slowdown of economy growth rate. A. Phillips determined the presence of negative correlation between the rate of inflation and the rate of unemployment. On the basis of so called Phillips curve a wrong conclusion was done that by increasing inflation it is possible to decrease unemployment. It wasn't confirmed in practice. There is a hypothesis stating that unemployment has a certain "natural" Not Accelerating Inflation Rate of Unemployment (NAIRU). Nowadays Phillips curve (1958) is considered in a wider sense as a complicated event, developing in the absence of neutrality of money in economic processes. The object of the research is interconnection of inflation and unemployment in Latvia. The goal of the researchanalysis of interconnection between inflation and unemployment in Latvia, estimation of the "natural" rate of unemployment. All these researches have not been done before. By using the statistical data of Latvia and analysis thereof show the possibility of using modern mathematical regression models for researches of macroeconomic indicators. Methods of the research are mathematical modelling, correlation and regression analysis. In Latvia systematic accounting of unemployment is done from 1996. For analysis of the interconnection between time series of inflation rate and unemployment a non-linear regression equation-a quadratic parabola was computed and estimated. The considered period is from the year 1996 until 2008. The negative correlation between inflation and unemployment occurs within the whole considered time length. Classical Phillips curve is missing. However, within the period from the year 1999 until 2008 negative correlation occurs, as it is with Phillips curve. Such change of correlation between inflation and unemployment from positive to negative value at the turn of 1998-99 is obviously explained by macroeconomic changes and development peculiarities in Latvia. To identify peculiarities of inflation in Latvia the period from 1999 to 2008 has been analysed separately. To check the quality of the regression models the correlation and regression analysis was done. The calculated index and coefficient of determination in both cases point at quite good quality of regression models: with the help thereof it is possible to explain 70 % and 60 % of inflation respectively. It is possible to say that both models of regression adequately fit empirical data and are appropriate for use. As...

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Object of the research is the condition of energy supply in Latvia. Goal of the researchanalysis of data on electric energy production in Latvia and expert estimate of the ways for creating energy security potential of the country. Methods of the research are analysis of statistical data, and methods of expert evaluation. Novelty of the paper is conditioned by the fact that expert estimation of the possible ways for creation of energy security potential of Latvia has been performed for the first time, and the consolidated opinion of a group of independent experts has been obtained on the most prospective ways. One of the main aims is diversification of ways of energy resources supply to Latvia. By the year 2030, the Ministry of Economic Affairs of the Republic of Latvia has been planning to decrease the volume of imported energy resources by 2 times and produce half of the energy by using its own renewable energy sources. Currently there are the ongoing negotiations in Latvia about the construction of another large hydropower plant (HPP) with the output of about 200 MW on the Daugava River. In the discussions the new HPP is considered to be a more ecological and economic alternative than the construction of Visaginas Nuclear PP. The estimates obtained from the expert query show large differences in their opinions. Altogether four methods are used for the processing of results of expert estimation, all the results of alternative ranking are compared and analysed by four methods. The conducted analysis makes it possible to conclude the following: the most promising directions for electric energy industry development in Latvia and, on this basis, for the creation of energy security potential of the country is the construction of HPP and heat power plants using its own energy resources. The direction of wind power industry development is recognised as important.

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