On the question of the economics of inflation

Updated on Financial 2024-02-09
6 answers
  1. Anonymous users2024-02-05

    1.Moderate inflation is good for the economy and there is no need to think about going back to before. Deflation will reduce the motivation of producers and, in severe cases, economic depression.

    2.** It can be through purchases (such as infrastructure construction materials, civil servants' services), transfer payments (such as various welfare subsidies), let banks borrow, and then the banks lend out.

    3.The ultimate purpose of issuing treasury bonds is to raise funds for national construction, and making up for the deficit is the intermediate purpose of issuing treasury bonds. Whether it can be changed or not depends on whether the country is stable or not. China's government bonds can be bought with confidence.

    4.The world will certainly not use the same currency. First of all, the United States will not agree.

    The current international monetary system is based on the US dollar. And money often represents a national plot. Moreover, in the face of different situations, who will decide whether to print money or not, how much to print?

  2. Anonymous users2024-02-04

    1. The inflation accumulated over a long period of time is not small, but the increase in people's wage level is also a lot, so it is not necessary; Inflation will cause consumers to have pessimistic expectations, and consumer investment will shrink rapidly, and it will be difficult to solve the problem in a short period of time once pessimistic expectations are formed.

    2. Operate through the open market.

    3. To make up for the deficit, you can print money or issue bonds, and bond issuance is the mainstream. In 98 there was a refusal to pay the national debt in Russia;

    4. Benefits: reduce the risk of exchange rate fluctuations; Disadvantage: The sense of national identity disappears.

  3. Anonymous users2024-02-03

    Too little is distributed.

    Otherwise, I can still give you the answer...

  4. Anonymous users2024-02-02

    Inflation.

    The definition is currency depreciation. The reason for inflation is the imbalance between the supply and demand of total commodities in society, that is, the supply of commodities exceeds demand, and the reason for the shortage of supply is that the speed of development is too high, and the reason for the high rate of development is that the stage of development is too low.

    Inflation is an economic phenomenon. This phenomenon contains three variables: first, monetary expansion; second, the supply of commodities exceeds demand; The third is currency depreciation.

    The relationship between the three is that monetary expansion is the result of currency depreciation, not the cause of currency depreciation. Since commodities are in short supply and currencies are depreciating, in order to balance changes in wages and price indices and expand investment production,** and businesses expand credit, leading to monetary expansion.

    Inflation is simply a strong reaction of aggregate supply to a decrease in the proportion of aggregate demand. Inflation shows that the growth rate of the "holding rate" of society exceeds the growth rate of the "holding rate".

    Deflation, in its conceptual sense, exists in economics in response to inflation. To put it simply, the amount of money issued by a country is less than the amount of money needed in real circulation and economic transactions, which is manifested as a lack of overall demand.

    Deflation will cause both employment and prices to fall, and once the warning line of the "tolerable range" is exceeded, it will inevitably show a "red light" to economic development.

  5. Anonymous users2024-02-01

    There is a certain relationship between inflation and economic growth, but it is not directly correlated. Economic growth refers to the increase in the gross domestic product (GDP) of a country or region, that is, the expansion of the size of the economy. Inflation, on the other hand, refers to the phenomenon of overall persistent prices, usually caused by too much money or demand exceeding supply.

    While economic growth can boost employment, increase productivity, and improve people's living standards, if it grows too fast, it can lead to higher inflation. This is because as the size of the economy continues to expand, the amount of money will increase accordingly, and the growth of goods may not keep up with the growth of money, leading to inflation. In addition, economic growth can also lead to problems such as resource scarcity and environmental pollution, which can have a negative impact on the economy.

    On the other hand, inflation also has a certain impact on economic growth. High inflation may lead to a decrease in the willingness of enterprises to invest, because enterprises are unwilling to invest a lot of money to buy a **increasing** equipment or raw materials, and when the same light is chaotic, it may also reduce people's willingness to eliminate the annual expenses, because the future price trend is uncertain, people may be more cautious in consumption. To sum up, there is both a link and a contradiction between inflation and economic growth.

    When the economy grows too fast, it can cause inflation problems, and high inflation rates can also suppress economic growth.

  6. Anonymous users2024-01-31

    1 The aggregate demand and aggregate supply model can be plotted. Then it is explained that the input ****, the manufacturer's production cost rises, the profit decreases, the output decreases, and the AS shifts to the left, resulting in the increase of **p and the decrease of output q;

    2 Further analysis will conclude that the results of the macroeconomic mechanism will appear, the price level will rise, income will be redistributed, enterprises that produce resources will benefit, and investment will increase, while enterprises that mainly invest resources will lose profits due to rising costs, products will rise, and consumer interests will be damaged. In the long run, it is possible to point out the possibility of cost-push inflation and explain its impact results.

    3. Discuss the current international and domestic situation and briefly put forward countermeasures. For example, the investment in international oil, iron ore, aluminum, zinc and other metal resources remains high, China's large import foreign exchange losses, and the impact of rising domestic prices in this industry; On the other hand, the excessive investment of enterprises in this industry has caused duplicate construction of resources, waste and environmental pollution, as well as income redistribution, consumer analysis of the gains and losses of different enterprises, and finally pointed out the national macro shorting, especially the policies that the People's Bank of China should take, such as raising the industry loan interest rate, raising the reserve gold Kai type, window guidance and other measures that the central lead seepage bank Cong Sun Hao is taking.

    Evaluation: Since the beginning of this year, this question examines the impact of rising prices on the macroeconomy, implying the strategies and research priorities that the central bank should adopt, the problems that China currently needs to solve urgently, and the hot spots in the hot spots.

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