Can 0 inflation exist in the absence of inflation

Updated on Financial 2024-03-02
12 answers
  1. Anonymous users2024-02-06

    I can tell you unequivocally: impossible! Prices are mainly related to the currency circulating in the market and the best goods, the currency in circulation is affected by national bonds, banking finance, currency issuance, etc., and the goods are also subject to many constraints, it is impossible to coordinate the two!

    The state can only rely on macroeconomic measures such as bonds and currency issuance to control inflation, and ensure that it is within a certain range.

  2. Anonymous users2024-02-05

    Mathematically speaking, absolute zero inflation does not exist, there can only be inflation about equal to zero, and there is inflation about equal to 0 on the macro level, but on the micro level, there is a large increase in the price of a small aspect, such as housing prices, vegetable prices, and land prices. while industrial products such as electrical appliances and automobiles are small.

    Inflation does not mean that constant is zero inflation, but it is relative.

    For example, if prices remain the same and per capita income grows, it is relatively deflationary. Prices are not the only factor in measuring whether inflation is or not.

    Another point is that financial executives are preemptive, they can only deal with problems and solve them, not accurately, there are too many unknowns in society, and there are many uncertainties.

  3. Anonymous users2024-02-04

    In the absence of inflation, the overall price level will remain relatively stable. Price stability can bring several benefits:

    1. Convenient planning: Stable prices can help companies better plan their budgets and costs. Predicting relatively accurate price levels can help business decision-makers make better investment decisions and plan business plans.

    2. Maintain stable production: Stable prices will usually enable Qidong Consumer Industry to maintain a stable production scale and improve the efficiency and capacity of the production process.

    3. Encourage a healthy investment environment: A lower inflation level helps to establish a long-term and stable investment environment, and slippery lead encourages people to make long-term investments and promote economic development.

  4. Anonymous users2024-02-03

    Excessive quantity of money: The real demand for money is less than the money supply, that is, the actual purchasing power is greater than the output supply, which leads to currency depreciation and inflation.

    If the amount of resources is limited and the demand increases, the supply cannot increase with the increase in demand, at this time, the increase in demand will only lead to an increase in the price level, thus causing inflation. Cost-push inflation refers to the inflation that occurs when the cost of production rises due to the rise in factors of production (such as wages, profits, rents, interest, etc.) under the condition that aggregate demand remains constant, and the product ** follows**.

    Inflation considerations.

    Investors should pay attention to the credibility of the trust company, pay attention to the risk of project investment and application, choose trust products more rationally, and reduce blindness.

    Suitable for people: Since the minimum investment amount of trust products is 50,000 yuan, it is still more suitable for investors with certain financial strength.

  5. Anonymous users2024-02-02

    Inflation generally refers to the depreciation of paper money and the phenomenon of price ** caused by the issuance of paper money exceeding the actual amount of money needed in commodity circulation. The essence of this is that the aggregate demand of society is less than the aggregate supply of society. In modern economics, inflation refers to an increase in the overall price level.

    General inflation is a decrease in the market value or purchasing power of a currency, while currency depreciation is a relative decrease in the value of two currencies. The former is used to describe the value of the national currency, while the latter is used to describe the added value in the international market. The correlation between the two is one of the economic controversies.

    The law of paper money circulation shows that the amount of paper money issued cannot exceed the amount of gold and silver currency it symbolically represents, and once it exceeds this amount, the paper money will depreciate and the price of goods will be **, resulting in inflation. Inflation occurs only under the conditions of paper money circulation, and not under the conditions of gold and silver currency circulation. Because gold and silver money has value in itself, its function as a means of storage can spontaneously regulate the amount of money in circulation so that it is compatible with the amount of money required for the circulation of commodities.

    Under the conditions of paper money circulation, because paper money itself has no value, it is only a symbol representing gold and silver currency, and cannot be used as a means of storage, so if the amount of paper money issued exceeds the amount required for commodity circulation, it will depreciate. For example: the amount of gold and silver money required in commodity circulation remains unchanged, and the amount of paper money issued exceeds twice the amount of gold and silver currency, and the unit of paper money can only represent the value of the unit of gold and silver currency 1 2, in this case, if the paper money is used to measure the price, the price will be doubled, which is commonly known as currency depreciation.

    At this time, the amount of paper money in circulation doubles the amount of gold and silver money needed in circulation, which is inflation. In macroeconomics, inflation mainly refers to the general rate of wages and wages.

  6. Anonymous users2024-02-01

    It refers to the depreciation of currency caused by the fact that the supply of money is greater than the actual demand for money, that is, the actual purchasing power is greater than the supply of output, which leads to the depreciation of the currency under the condition of paper money circulation.

  7. Anonymous users2024-01-31

    What is inflation and why is there inflation.

  8. Anonymous users2024-01-30

    At the time of the financial crisis.

  9. Anonymous users2024-01-29

    The contraction of inflation basically means that the country is finished...

    All high-speed countries have inflation.

    What needs to be done is to control the degree of inflation. The inflation rate in our country is a bit high and deformed.

    As for the reason, it was explained very clearly upstairs. That's all textbook.

  10. Anonymous users2024-01-28

    In the context of inflation, the choice of resources is to do non-renewable resources of enterprises, or to buy spot or ** investment, the safest is to buy, such as, **. However, it is best to be cautious, because in the case of inflation, banks may shrink monetary policy and raise interest rates, which has a great impact on **, so it is recommended to buy investments such as ***, and in **market, it is recommended to buy long-term investments in non-renewable resources or blue chip stocks.

  11. Anonymous users2024-01-27

    Many people believe that it is caused by the increase in money in circulation, and in economics, there is demand-driven inflation, which is caused by the aggregate demand for goods and services being greater than the aggregate supply, that is, insufficient supply. It is also said that inflation is a monetary phenomenon anyway.

    In fact, inflation is normal for a fast-growing country, because economic development will inevitably cause inflation. It's just a matter of degree.

  12. Anonymous users2024-01-26

    Answer] Conversation: B

    Question analysis: When the inflation of general loans occurs, the social price is generally **, which makes the currency deposits depreciate, and consumers will tend to take out their deposits and turn to invest in physical assets or assets with higher syndicated returns in order to maintain their value, which will lead to a decline in social deposits.

Related questions
14 answers2024-03-02

The increase in the consumption power of the whole people leads to an increase in demand, and prices rise, and a rise of more than 3% of the average consumption level of the previous year leads to inflation; >>>More

5 answers2024-03-02

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

3 answers2024-03-02

Hello, I hope mine is helpful to you.

Friedman, a representative of monetary theory. >>>More

6 answers2024-03-02

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. >>>More

18 answers2024-03-02

It's very simple, the price**. It's like you're a company, it's inflation, and all workers, wages, and raw materials have gone up. That's how it is now. No matter what you buy, the price is rising, and what you used to be able to buy for 1,000 yuan is now not available. >>>More