Against the backdrop of severe unemployment, why the implementation of a devaluation of the local cu

Because when interest rates rise, bonds and assets will fall, and people's speculative demand will decrease, and then the total demand for money will decrease.

The level of national economic development is the main factor that determines the demand for money, usually in terms of the total value of final goods and services through the monetary medium, that is, the gross national product.

Some scholars use the gross national wealth as the main factor in determining the demand for money, because the gross national product can be regarded as the discounted value of the gross national wealth at a certain interest rate.

Therefore, in a statistical sense, the significance of the two is similar.

In addition to the level of economic development, different economic structures.

and business cycles also have different requirements for the amount of money required.

When interest rates are low and the cost of holding is low, people will hold more money to prevent accidents. When market interest rates.

High enough, one may try to take the risk of a precautionary reduction in money, turning a portion of this currency into interest-bearing capital in the hope of earning a higher interest.

The magnitude of price changes.

Since ** is rigid, the trend of change is generally upward, and people are usually concerned about how to prevent currency depreciation or how to be compensated after depreciation.

This concern makes it possible to engage in monetary **.

It is difficult for banks operating without adjusting nominal interest rates.

Deposits are accepted in case of price adaptation**. The nominal interest rate on the loan must be adjusted to match the price of goods**, otherwise it is difficult to obtain investment returns.

The nominal interest rate level and the ** level have a trend of synchronous development, and the magnitude of the ** change restricts the nominal interest rate level.

In the interest-rate coordinates, the money demand curve is sloping downward. When other things are equal, as the interest rate increases, the demand for money decreases, which is a change along the curve, because the increase in interest rates represents an increase in the yield of bonds, etc., so currency holders tend to change currency to bonds, etc., which also leads to a decline in the demand for money. The increase in money demand refers to the increase in money demand at any given interest rate level, which is reflected in the coordinate chart as the overall shift of the money demand curve to the right.

When the money supply is constant, the demand for money increases, which means that money is more scarce, and holders are willing to pay a higher price for holding money. The diagram shows the right-shifted money demand curve and the given money supply curve.

A new equilibrium has been reached, and interest rates have been raised compared to before. The reason for the increase in the demand for money may be that the increase in the amount of money required for transactions is due to the increase in output income.

When a country's currency depreciates, imported goods** will rise, resulting in imported inflationBut this relationship is not absolutely valid。In some countries, the exchange rate of the currency has little impact on the growth of domestic prices, but in some countries it has a greater impact.

Countries with a relatively large impact have a characteristic that most of the imported commodities are bulk commodities or basic industrial products or basic manufacturing products, which are dependent on imports when the economy's own production cannot meet domestic demand, which also reflects the country's economic dependence on foreign countries and its own ability to resist risks is not strong, so when the currency exchange rate of the country depreciates, the price of imported goods will rise, and these commodities you must also import. You can't stop importing because the price has risen, just like just demand, so it will cause the overall domestic price to be the whole because of the price of this commodity, which is imported inflation.

In turn, the price of a country** may also cause the exchange rate of the national currency to depreciate. The price of a country** will affect the psychological expectations of the people, and the people will feel that their own currency is not valuable, so they will sell their own currency, so that the exchange rate of the national currency will be devalued. However, this is not absolutely true, it depends on how much the country's prices have risen so much that it can affect people's expectations, and on a country's foreign exchange management system (free exchange or limited exchange with quotas).

In recent years, affected by the general environment, whether at home or abroad, the economic situation is not very good, and even the global economy has undergone great changes. The main reason is that the epidemic has plunged the global economy into a recession, and three years have passed since the outbreak of the epidemic, and it has still not been effectively alleviated. <>

Therefore, in order to cope with the situation of the global economic recession, monetary policies will inevitably be adjusted among countries. Before his death, the United Nations** and the Development Conference made a clear announcement that if you want the monetary and fiscal policies of advanced economies, you could plunge the global economy into recession or secular stagnation, and even cause more damage than the 2008 financial crisis. We all know that since April this year, the war between Russia and Ukraine has also had a great negative impact on the economy, because the rapid increase in economic development and the tightening of fiscal policy, oil ****, etc., have led to a global economic slowdown and downturn.

The situation is the same in all countries and around the world, with workers' wages falling, fiscal funds tightening, and financial turmoil. A change in monetary policy will inevitably lead to a recession, and inflation is highly likely. Eventually, inflation could lead to a collapse of the economy, after the Fed raised interest rates from 25 basis points to 50 basis points.

For monetary policy has taken a more aggressive approach, and now in order to curb inflation, monetary tightening is also being adopted, but this can not solve the situation of economic recession, we can know through some previous information, where in the context of inflation, the economy is difficult to implement a soft landing, because more and more economists and investors will worry about high inflation and a large number of interest rate hikes will inevitably lead to a recession, the risk will rise, and even the world economy will be buried in hidden dangers. A recession is 100% certain, and now it's just a matter of how much the extent and speed of the recession will change.

Not necessarily, changes in monetary policy should not only refer to regional policies, but also to changes in international economic markets and foreign exchangeThere are also influences. It cannot simply be said to cause a recession or inflation.

In fact, the economic policy of any country actually contains many opportunities and changes in the national economic market, but we cannot blindly think that these situations will bring bad results, which should actually be determined according to the changes in the domestic and foreign economic situation, as well as the country's current regulation and control of materials.

What changes will cause inflation?

At present, money is mainly measured and paid with paper money, and because there is no fixed way of valuing the value, there is a possibility of inflation and inflatation. The essence of money is the payment of the fruits of labor in the present, and the dilution and depreciation of the fruits of labor in the past. This shows that the current economic money is already slowly depreciating at the moment of ownership, and only by constantly earning money to counter this dilution can it hinder the reduction of the value of money by inflation.

The most intuitive example of this situation is the direct change in the monetary value of money in our country, which can be learned in detail if you are interested. <>

What changes would cause a recession?

In terms of personal understanding of economics, monetary policy is mainly divided into two aspects: expansionary and contractionary. Contractionary policies will reduce the circulation and quantity of money, increase interest rates, and achieve the purpose of reducing investment and compressing the demand for money. In this way, supply and demand can be balanced, and inflation can be reduced, but it will also lead to a decrease in the flow of money, triggering an economic recession in the objective sense, while expansionary policies have to be the opposite.

The quality of any change in economic policy should be understood on a case-by-case basis.

In the face of any country's economic policies, when understanding and thinking, we must not only have a detailed understanding of the issuance and regulations of national policies, but also have a clear understanding and analysis of the domestic and foreign situation, so that we can better understand these economic policies and avoid the depreciation of our own monetary value, so as to better protect ourselves in the process of economic recession. <>

It won't cause a recession. The main reason for the recession is that it pulls on the material. It will cause inflation in the short term.

It will not cause a recession, it may cause a small part of inflation, but after the strong measures of the state, it will definitely return to the usual level.

Loose monetary policy refers to a kind of monetary policy that banks have talked about reducing the rediscount rate and statutory deposit reserves, increasing the amount of money, and increasing the funds available in the market.

Generally speaking, the rise in market interest rates will cause bond-type fixed income products** to fall, ******, the real estate market, and the foreign exchange market will fall, but the savings income will increase.

The market interest rate is the interest rate determined by supply and demand in the capital market. Market interest rates change frequently due to changes in supply and demand in the capital market. When the market mechanism comes into play, the supply and demand of credit funds will gradually become balanced due to free competition, and the market interest rate in this state is the "equilibrium interest rate."'The official interest rate corresponds to the market interest rate.

The official interest rate is the interest rate set by the monetary authority. The monetary authority can be a **bank, or it can be a ** department with actual financial management functions, and the market interest rate generally refers to the London Interbank Offered Rate and the Federal ** interest rate of the United States. The interest rate of China's interbank lending market is also the market interest rate.

Because the interest rate is the capital of the capital, as a commodity, according to the demand curve, the higher the demand, the smaller the demand.

When interest rates are low and the cost of holding is low, people will hold more money to prevent accidents. When market interest rates are high enough, people may try to take the risk of a precautionary reduction in money by turning a portion of that currency into interest-bearing capital in the hope of receiving higher interest.

Speculative money demand is the demand for money formed by people adjusting the asset structure in time in order to avoid capital loss or increase capital interest due to the uncertainty of the future interest rate.

When interest rates rise, bonds, and assets will fall, and people's speculative demand will decrease, which in turn will reduce the total demand for money. Conversely, when income increases, people increase demand for transactional and precautionary money, and the total demand for money increases.

Changes in the demand for money are determined by both income and interest rates.

When the interest rate rises, the loan interest rate is also rising year-on-year, and the borrowing cost of the enterprise is high, if it is higher than its profit point, the enterprise will reduce production or stop production, and the monthly production will be more lossy, and the less money borrowed from the bank, this is the decrease in the demand for money.

The rise and fall of the exchange rate can be seen in a country's economy and other aspects, and at the same time, the depreciation or appreciation of the withdrawal currency (properly Taojin provides interest-free **** stock index allocation services).