Why inflation has to happen

What is inflation and why is there inflation.

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 Now, because of the existence of restrictions, various real estate companies have withdrawn from the real estate market, a large number of properties have been sold, and hot money has nowhere to go, so it can only flow to the commodity market, which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!

<> with the development of the economy, inflation has become a common phenomenon, and it will bring many problems to the economy. This article will discuss the problems that inflation can bring about from the following aspects:

1. Inflation leads to prices**.

Inflation refers to the continuous rise in the general level of prices, which means that prices will continue to increase and the purchasing power of consumers will decrease accordingly. Due to prices**, consumers' incomes are not enough to cover the burden of prices**, which leads to a continuous decline in the income level of consumers, thus affecting the development of the economy.

Second, inflation will lead to a decrease in investors' enthusiasm for investment.

Investors' enthusiasm for investing will be affected by prices, and they will consider investments more cautiously because they are not sure whether the gains on their investments will outweigh the losses due to prices. As a result, investors' enthusiasm for investing will be affected, which in turn will affect the development of the economy.

3. Inflation leads to currency depreciation.

The purchasing power of a currency decreases due to prices**, which leads to a depreciation of the currency. Currency depreciation will lead to the export of products, which will affect the export of products, and thus affect the development of the economy.

Fourth, inflation leads to economic instability.

Due to prices, the income level of consumers will fall, investors' enthusiasm for investing will be affected, and currency depreciation will lead to export products, which will lead to economic instability.

Fifth, inflation will lead to a widening gap between the rich and the poor.

Due to prices, the income level of consumers will fall, while the income level of the rich will not be greatly affected, which will lead to a widening gap between the rich and the poor, thus affecting the harmony of social and travel blind associations.

6. Inflation leads to social instability.

Due to prices, the income level of consumers will fall, and the gap between the rich and the poor will increase, which will lead to social instability, which will affect the development of the economy.

Inflation is a common phenomenon that can cause many problems to the economy, including prices, decreased investor enthusiasm, currency depreciation, economic instability, widening gap between rich and poor, and social instability. Therefore, effective measures should be taken to control inflation in order to maintain the stable development of the economy.