What is inflation? What s the downside!?

Inflation creates risks such as currency depreciation, falling prices**, falling savings, costs**, and rising unemployment.

This is a period in history when it was a kind of commercial monopoly, and if you are a businessman, you should be careful

The effects of inflation are: prices**, currency depreciation; bank savings fell and capital outflows; The employment rate will increase; Domestic prices** promote exports and discourage imports; Persistent inflation can cause economic disorder.

Inflation refers to the fact that the supply of money is greater than the actual demand for money, in short, the supply exceeds demand. The impact of inflation on corporate financial activity is multifaceted. The main manifestations are:

It causes a large increase in the occupation of funds, thereby increasing the capital demand of enterprises. It causes the profits of enterprises to increase inflated, resulting in the loss of enterprise funds due to profit distribution. Cause profits to rise and increase the cost of equity funds of enterprises.

It will lead to ****** and increase the difficulty of corporate financing. As a result, the supply of funds is insufficient, and the financing difficulties of enterprises are increased. Inflation is when supply is less than demand.

Under the condition of money circulation, the real demand for money is less than the money supply, which leads to currency depreciation and price **.

Inflation means that it must exceed a certain range. Inflation refers to prices, which are the weighted average of all goods and services. Inflation refers to being caused by seasonality or natural disasters.

Inflation refers to the price of goods, which lasts for a certain period of time. Inflation refers to prices**, which in a non-market economy manifests itself as a shortage of goods. Inflation has pros and cons, but it cannot exist for a long time, and if you want to control it, you must implement measures such as controlling the amount of money, regulating and controlling aggregate social demand, price limits, tax cuts, and so on.

1. Inflation is a term in the field of economics. Inflation is defined as the pervasiveness of most goods and services in the economy over a period of time. Inflation emphasizes "most goods and services" and "persistent".

If it's just a **** of a certain kind of goods and services, it may be speculation or short-term shortages; Similarly, if it fluctuates up and down instead of "continuously", it cannot be called inflation.

2. It is also the inflationary "most of the goods and services" and "price persistence" that have had a very significant impact on the economy, life and production of our society. First of all, the root cause of inflation is the over-issuance of money and the decline in the purchasing power of money. For us personally, the feeling is that there is not enough money, things are expensive, and the quality of life is declining; As far as society is concerned, economic development has deviated from the normal track, and there is a kind of pathology.

Secondly, due to the decline in the purchasing power of money, the intangible transfer of assets and social wealth in inflation, the poor may become poorer and richer the richer, resulting in a widening gap between the rich and the poor.

Just look at commodities, in recent years, due to the impact of the epidemic, including oil, non-ferrous metals and coal, etc., **steadily**, although coal ** has stabilized later, these have nothing to do with most people. However, with the subsequent vegetables, fruits, eggs, meat and other agricultural products have also begun to be large, many people said that they can't bear it, and their living expenses are getting more and more every month. In particular, because of the epidemic, many people do not have ** salary, but their expenses are increasing, and people's monthly expenses are greater than their income, so the pressure on life is huge, especially for people who are still burdened with mortgages and car loans.

Take the end of last year as an example, a round of vegetables **, many netizens have said that there is a phenomenon that vegetables are more expensive than meat, so can you still afford to eat? In recent years, due to the impact of the epidemic, many industries have been in a state of regression, industry profits are low, enterprises cannot make money, resulting in employees not making money, and a large number of people are unemployed. Especially, in such a situation, many people don't want to make money, and it's good to have a job.

So, is the price ** that has been appearing all the time brought about by inflation? In fact, it is almost the case, because of the problem of excess currency, the original time, the real estate market was hot, and a large amount of hot money poured into the property market, which can not only absorb the inflow of trillions of yuan, but also drive economic growth. Now, because of the existence of restrictions, various real estate companies have withdrawn from the real estate market, a large number of properties have been sold, and hot money has nowhere to go, so it can only flow to the commodity market, which has also led to the price of goods related to ordinary people.

In order to promote economic development, the United States, for example, has been printing a large amount of money into the market, which is also the cause of inflation, and after the money is issued, it is necessary to carry out currency drainage. Take China as an example, in the case of capital return, commodities will be the first, and the original time, the property market is to be a "reservoir", but with the tightening of the property market, these funds can only flow into other industries.

In the inflow of other industries, such as e-commerce, once there is a hegemon in such an industry, it will lead to a decrease in the profits of the industry, and a large amount of money will be finally earned by the platform, and merchants and consumers are a wave of "leeks". A large number of markets and various industries have been compressed, resulting in countless bankruptcies and bankruptcies.

And, in fact, there is an inflow of funds into the market, that is, the secondary financial market - **, but, you must know that ** is unstable, that is, being cut as leeks, many people in the ** after basically winning less and losing more, a year of money, may not be as much as other people's deposits.

Moreover, **the** also depends on the real economy, without economic support, it is just a flash in the pan. Nowadays, housing prices have begun to **, and many cities are also relaxing policies, but is buying a house really good? Today's houses are more than the population, even if the price of these houses themselves is reduced, ** is not low, hungry and want to buy a house, or observe first!

The cause of inflation is the over-issuance of money. Conclusions are drawn on the premise of this aspect, and the effects of inflation are returned. 1: Price**A.

2: Cost**.

Reason: The cost of raw materials and labor must meet the necessary survival needs at the same time due to the **** of goods.

3: Declining savings.

Reason: Prices continue to rise, bank interest rates are not enough to resist inflation, willingness to save is declining, and funds are flowing out to other investment products (assets).

4: Currency depreciation.

Reason: Currency over-issuance will cause the depreciation of the national currency, the setback of import-oriented enterprises, and the earnings of export-oriented enterprises.

5: Increased economic risks.

Inflation, if it persists for a long time, is definitely an absolute bad thing. But if the short and medium term is conducive to economic development. The prerequisite is that the allocation of new currencies is reasonable and that financial leverage is within a manageable level (which is more difficult to do).

6: The inflationary period indicates a prosperous economy with low unemployment.

The above is a macro view.

Words for the individual:

1: Fixed income holders are affected, and floating income holders benefit. :

2: The borrower earns, the depositor suffers.

3: The general population suffers, and the state benefits.

4: Those who hold wealth and assets benefit, and those who hold currency lose.