The U.S. financial crisis is not inflation

First of all, this proposition is under-considered. The current financial crisis in the United States is not inflation or deflation, but the process of deflation and inflation included in this financial crisis. To put it simply, the people of the United States can't afford to repay the loans for some reasons (the reasons are very complicated, you can go to the subprime mortgage in detail, which is why this is called the subprime mortgage crisis), and then because various banks and other financial institutions have packaged and resold these loans, and then the real financial world has not been able to repay the money, and then there is a crisis of confidence, and everyone is afraid to lend money to others, so it is deflation!

Then, in order to stop this situation from deteriorating, banks introduce an active monetary policy to increase the amount of money in the market, and this is the case all over the world, and inflation may occur.

There is pure inflation or deflation, and inflation is always there, it just depends on whether it reaches a dangerous level.

What we generally call inflation now means that it has reached a dangerous level.

The concept of inflation is simply the price of goods, that is, the banknote has become worthless and depreciated.

The concept of deflation is a bit more complex, but it also manifests itself in prices**.

The difference between the two is that the deflationary price ** is not the shortage of goods, but precisely because of the decline in the consumption rate caused by the surplus of goods, so that the sales of goods are reduced, that is, overcapacity, overcapacity means that the factory has to reduce production, profits are reduced, and the factory must reduce expenses, so that wages are lowered, and workers are unemployed, which further leads to a decline in consumption levels and forms a vicious circle. The reason why the commodity ** is rising is because the number of goods sold is less, so the unit price must rise in order to make a profit.

The price of inflation is due to the fact that the increase in the amount of paper money per unit of time is greater than the increase in the value of the commodity (that is, the sum of the value of the goods produced during this period), according to the principle of equivalent exchange, the total value of money is always equal to the total value of the commodity, if the quantity of money increases, then the value of the unit of money decreases, that is, the value of the money depreciates.

Comparing the two, deflation is more terrible than inflation.

The financial crisis in the United States was caused by home lending and their credit card culture. Inflation or deflation is just one form of manifestation.

It belongs to deflation, and the definition of deflation is that everyone knows that there is excess productivity and insufficient demand, which then leads to a decline in costs and costs, which is called deflation

Inflation is caused by the general trend of wages and wages. Then it causes prices**.

Why is there inflation all over the world, haha, this question is good, because every country is developing, and development means progress in wages and so on. Progress means that whatever prices are universal, it will lead to inflation.

I typed it one word at a time, please give me points.

Deflation. A large number of currencies were issued, and the value of the currency fell; The collapse of the financial system led to a contraction in the production of the real economy.

No. About inflation.

The explanation is very clear, and the landlord can send it to me if he still has questions.

Inflation, which can easily lead to a financial crisis, is the result of a financial crisis, leading to deflation, deflation, and exacerbating the financial crisis. The main cause of inflation is that the amount of money is too large, or the amount of money is too fast, and the economy is active, resulting in short supply, high prices, and economic bubbles. The bubble bursts, and there is an economic crisis, or a financial crisis.

Extended Materials. A financial crisis, also known as a financial turmoil, refers to a sharp, short-lived and super-cyclical deterioration of all or most of the financial indicators (such as short-term interest rates, monetary assets, real estate, land, business bankruptcies and financial institution failures) in a country or several countries and regions.

It is characterized by the expectation that the future of the economy will be more pessimistic, and the currency value of the entire region has depreciated by a large extent, and the total economic volume and economic scale have suffered large losses, and economic growth has been hit. It is often accompanied by a large number of business closures, rising unemployment, a general economic depression in society, and even sometimes even social unrest or unrest at the political level of the country.

Type characteristics Financial crises can be divided into currency crises, debt crises, banking crises and other types. Increasingly, financial crises are taking on a hybrid form. It is characterized by the expectation that the future of the economy will be more pessimistic, and the currency value of the entire region has depreciated by a large extent, and the total economic volume and economic scale have suffered large losses, and economic growth has been hit.

It is often accompanied by a large number of business closures, rising unemployment, a general economic depression in society, and even sometimes even social unrest or unrest at the political level of the country. The trend of economic globalization has become even more pronounced. The globalization of financial activities is an important reason for the rapid development of contemporary resources in the world's new allocation and economically backward countries and regions, but with the large-scale development of international credit and investment, its inherent contradictions have deepened, and the financial crisis will inevitably erupt in those most weak links where the system is not perfect.

To sum up, the modern market economy not only has a crisis caused by overproduction of commodities and insufficient demand, but also a financial crisis caused by uncontrolled financial credit behavior, excessive use of new financial instruments and excessive speculation in the capital market.

In the capitalist world, this crisis of the market mechanism is in turn catalyzed and exacerbated by the basic system. Financial crises are inevitable not only in capitalist countries, but also in the socialist market economy.

Inflation is one way to cause an economic crisis.

Inflation refers to the fact that demand is greater than supply, resulting in currency depreciation, price **, inflation to a certain extent, there will be a huge bubble, the bubble bursting is a financial crisis, and companies have collapsed.

Further information: Finance refers to the economic activities in which banks, ** or insurance companies raise funds from market entities and lend money to other market entities in economic life.

Broadly speaking, all capital flows generated by market entities such as **, individuals, and organizations through the raising, allocation and use of funds can be called finance. Therefore, not only the financial industry, but also the finances of the industry, the behavior of industry enterprises, and personal financial management are all part of finance. Finance can be regarded as three types of economic behaviors: fundraising allocation (fundraising), investment and financing (borrowing money to buy stocks).

Basic meaning. The essence of finance is the circulation of value. There are many types of financial products, including banks, insurance, trusts, etc.

Finance involves a wide range of academic fields, including accounting, finance, investment, banking, insurance, trust and so on.

Constituent elements. There are five elements of finance:

1. Financial object: currency (capital). The currency circulation regulated by the monetary system has the nature of advance, turnover and value-added;

2. Financial methods: represented by credit methods based on lending. The objects of transactions in the financial market are generally written proof of credit relationship, contractual documents of creditor's rights and debts, etc.;

Including direct financing: no intermediaries involved; Indirect financing: Finance through the intermediary role of intermediaries.

3. Financial institutions: usually divided into banks and non-bank financial institutions;

4. Financial venues: financial markets, including capital markets, money markets, foreign exchange markets, insurance markets, derivative financial instrument markets, etc.;

5. System and regulation mechanism: supervise and regulate financial activities.

The relationship between the elements: Generally speaking, the elements are relatively independent and interrelated, with financial objects and financial venues being the hardware elements of the financial system, financial methods, systems and regulatory mechanisms being the software elements of the financial system, and financial institutions being the comprehensive elements.

Specifically, financial activities generally use credit instruments as the carrier, and through the trading of credit instruments, they play a role in the financial market to realize the transfer of the right to use monetary funds, and the financial system and regulatory mechanism play a supervisory and regulatory role in it.

The reason why the United States is experiencing such a serious inflation problem this time is that there is a structural imbalance in the American economy. From the very beginning, the large-scale fiscal policy and loose monetary policy in the United States made the monetary reserves extremely insufficient, and then encountered the new crown epidemic caused a huge crisis in the domestic market economy, with an imbalance between supply and demand, and the recovery progress of enterprises could not keep up with the market demand for goods. In addition, due to the new crown epidemic, the labor force in the United States is vacant, which has led to the doubling of the salaries paid by companies to employees**, further deepening the inflation of the economy.

However, the root cause of these problems lies in the fact that the timing of the regulation and control mistakes and measures is too late. Therefore, inflation has become an established fact, and for the time being, the current US incumbent ** still does not have any effective measures to regulate the fiscal aspect. Therefore, the reason why the United States is now experiencing the worst inflation in decades is the United States itself.

The inflation problem faced by the United States is, in the final analysis, due to the fact that the Federal Reserve has rotten liquidity in recent years, especially when the epidemic broke out. The Ukraine crisis has added to the already tense international situation, which has boosted commodity markets**, which are largely denominated in US dollars.

According to a NBC poll last month, in the face of the worst inflation in the United States in 40 years, 38% of the Americans surveyed believe that the economic policies of the United States are the main culprits. This was followed by the pandemic (28%), price increases by companies (23%), and only 6% attributed inflation to the Russia-Ukraine conflict.

Inflationary reasons.

Caused by the US dollar. U.S. quantitative easing monetary policy. .

If you print too much money, it will not be worth much, like the peasants are all cabbage, cabbage is not worth much, and everything will be expensive if the money is not worth anything, this is a method in the United States, and if you don't have money, you will print money to use it yourself. The cause of inflation is economic fortunes.

The last time was from 1929 to 1933, and it was not only the United States, but also the capitalist countries of Europe as a whole.

That crisis was in line with Marx's political economy, that is, the capitalists overpossessed social wealth and overproduced in pursuit of profits, while the people were exploited and poor and could not afford to consume, resulting in overcapacity and waste of resources. One side can't sell it, and the other side can't afford it. Then there are layoffs, workers lose their jobs, and a vicious circle.

The United States is facing the worst inflation in 40 years, and this is caused by many reasons, the most important of which is its internal economic policy, and the so-called Russia-Ukraine conflict is only the external cause of this problem.

In fact, his respect is due to the fact that the United States is facing the entire global economy and finance in this situation, and we also believe that if there is no global economic crisis, the United States will not have such a serious problem, so I think we should not think that this is the best.

The U.S. is facing the worst inflation in 40 years because of the pandemic.

It is due to the consequences of the epidemic some time ago, for the sake of its own economy, it has continuously cut interest rates, which has led to the current inflation.

Regarding the question you asked, people have not risen much in prices for decades, so if it rises a little, it should be a normal thing, like eggs have been a dozen dollars for a long time, even if it rises by 100%, it will be two dollars and 12 eggs.

The United States is facing the worst inflation in 40 years, and this is because the United States has printed too much money over the years.

Yours is the one with high requirements, this quality requirement is particularly high, the number of words cannot be less than 150 words, and it must be clear paragraphs, of course, the correct must be about the same, it must be expressed in paragraphs.

In fact, this question is very easy to explain, you can think of it this way, it is precisely because your question has a certain universality, so it is recommended that you go to Bilibili or other **** search for relevant tutorials, I believe you will find the answer you need soon, I hope mine is helpful to you, thank you.

A financial crisis can lead to deflation.

The financial crisis is characterized by a relatively large depreciation of the currency value of the entire region, a relatively large reduction in the total economic volume and economic scale, and a blow to economic growth, often accompanied by a large number of business closures, an increase in unemployment, a general economic depression in society, and sometimes even social unrest or national political turmoil, which leads to deflation.

Expansion: Causes of deflation:

1. Contractionary monetary and fiscal policy.

If a country adopts a contractionary monetary and fiscal policy, reduces the amount of money, deflation, cuts public spending, and reduces transfer payments, there will be an imbalance between the commodity market and the money market, and "too many commodities will pursue too little money", which will cause deflation in policy contraction.

2. Changes in the economic cycle.

When the economy reaches the peak stage of prosperity, there will be a large oversupply of production capacity, and the supply of goods will continue to fall, triggering periodic deflation.

3. The effective demand for investment and consumption is insufficient.

When real interest rates are expected to fall further and the economic situation continues to be poor, both investment and consumption demand will decrease, and the decrease in aggregate demand will lead to prices**, resulting in demand-pulling deflation.

FYI.