Using Hayek s theory to analyze the current inflation in our country 5

Hajak doesn't know very much.

The Fed's rate hike and rate cut are indeed a bit embarrassing.

Generally, it is because of the oversupply of domestic currency, resulting in prices**. The inflation I have experienced is mainly caused by the 4 trillion yuan of expansion of domestic demand implemented in order to reduce unemployment under the financial crisis.

With regard to the theory of inflation, the following questions are asked about the causes of inflation:

1. Demand-pulled: demand exceeds the supply of commodities and causes inflation;

2. Cost push: rising production costs cause inflation;

3. Structural imbalance: the country's industrial structure is out of balance and causes the inflation of the lead stool;

4. Insufficient supply: inflation caused by insufficient aggregate supply under the condition that the aggregate demand of the society remains unchanged;

5. Pessimistic expectations: negative view of inflation, resulting in persistent inflation;

6. Institutional problems: The imperfection of the national system causes inflation.

Data Extension:

Inflation is the level of prices that have an additional character or state: it is not entirely expected; It leads to further price increases; It has not increased employment and real production; It is faster than a certain "safe" rate; It is caused "by the monetary side"; It is measured in terms of a real price consisting of indirect taxes and subsidies; It is irreversible.

The consumer** index is the retail price index, which in some countries is also called the cost of living index. The Consumer Price Index** is a measure of changes in goods and services** consumed by households and individuals. It is a weighted average of many (usually hundreds) consumer goods and services** indices.

Producer** Index. The producer index is a wholesale index. The formula is basically the same as the consumer index, but the price here refers to the wholesale price rather than the retail price, and the quantity and variety of goods and services included are also different from the consumer index.

Inflation causes a redistribution of income. During inflation, the growth of some people's nominal income will be less than the magnitude of ****, which will reduce their real income and living standards.

But for others, nominal incomes will rise more than prices, raising their real incomes and their standard of living. The losses are offset against the gains, and the overall and average levels of real income remain the same.

abcdDemand-pulled.

Cost push. Structural dysfunction.

Insufficient supply. Improper expectations.

Institutional factors. A mixture of the above factors.

For details, see Gao Hongye, Western Economics, p476

Inflation is an important means by which the bourgeoisie or the ruling class intensifies the exploitation and plundering of the working people at the grassroots level. Inflation is first and foremost a catastrophe for workers and peasants. It has led to a constant decline in prices and the purchasing power of money, which has led to a sharp drop in the real wages of workers and an increasingly impoverished life.

However, because of the widening of the "scissors gap" between industrial and agricultural products in the process of price increases, small producers such as peasants have no choice but to buy the means of subsistence and means of production of capitalist industrial production and sell their agricultural products and handicraft products at low prices, thus becoming even more impoverished. Inflation also seriously affects the lives of public officials and intellectuals in general, as their salaries cannot rise commensurate with the price of goods. However, inflation has brought great benefits to the monopoly bourgeoisie.

Not only will they transfer most of the income plundered by the bourgeois state from the working people through orders and subsidies, but they will also be able to make huge profits by taking advantage of the decline in real work, or paying off debts with depreciated money, and taking advantage of soaring prices to hoard and so on.

Demand-based inflation: Demand-based inflation, that is, demand-driven inflation, refers to inflation formed by the expansion of aggregate demand. The first driving force of demand-based inflation is directly the demand for money, the excessive issuance of money.

The excessive issuance of this currency leads to an inflation in aggregate demand, which triggers inflation. Cost-push inflation: is the main type of supply-based inflation.

Refers to inflation caused by excessive increases in the cost of upstream products and wage rates. It should be noted that it is not to say that any increase in the wage rate will lead to inflation. There is a condition for inflation caused by the rise in the rate of money wages.

This condition is that inflation will arise only if the growth of the rate of money wages exceeds the growth of marginal labor productivity. Structural inflation:

It refers to inflation caused by changes in the structure of production that leads to an imbalance between total supply and demand or a partial imbalance between supply and demand. The transmission mechanism of inflation caused by structural imbalance is: rigid mechanism and comparison mechanism.

Mixed inflation of supply and demand: In real economic life, the purely defined demand-pulled, cost-pushed, profit-pushed, and structural inflation cannot be sustained, and eventually evolve into complex mixed inflation. Inflation with a mixture of supply and demand is the main manifestation of this.

Judging from its dynamic characteristics, there are two types: "spiral" and "linear". In the former, inflation is first caused by supply factors, and then aggregate demand rises, evolving into mixed inflationThe latter is inflation caused by demand factors first, and then causes costs to rise, forming a mixed inflation of supply and demand.

It is generally accepted that inflation refers to the persistence of the general price level in different forms. In this definition, it must be noted that: (1) "general price level", that is, inflation refers to the ** of all goods and services, and local prices** are not regarded as inflation.

2) "Sustainably", that is, in the process of real inflation, although individual prices have risen and fallen, general prices have shown a long-term upward trend. Therefore, seasonal, temporary or occasional prices** cannot be considered inflation. and (3) "different forms of prices**", where the different forms include overt and covert forms.

In a public form, no measures such as price controls and price allowances are adopted;However, in some countries,** prices and wages are strictly controlled, and allowances and rationing measures are introduced for certain necessities to stabilize prices. In this way, on the surface, the price index will not change much, but if the deregulation is lifted, the price will be publicly exposed.