Where are the root causes of inflation tangled

First of all, we need to know what inflation is, and inflation is a rise in the general level of prices over time. This means that most of the goods** are rising in inflation. There are two main reasons for this: costs driving up inflation and demand driving up inflation.

First analyze the cost of pushing up inflation, 1Literally it is that rising costs lead to ** rises, such as the cost of oil, manpower, and electricity, etc., 2There are also some external reasons, such as locusts that cause a bumper harvest of food, so that the number of items that are raw materials has increased.

The second demand pulls up inflation, 1 income is high, natural consumption of water products is high, then the consumption power increases, ** will increase. 2 And the banks are also closely related to this, and the low interest rates of the banks have led to a large outflow of money and excessive consumption. 3** Printing a large amount of money in order to cover the national fiscal deficit will also lead to an increase in demand capacity.

These are the reasons for the tangle.

The essence is the development of human society, and it is normal for the demand of society to be greater than the supply, which is why the developed countries of the West now believe that slight inflation is a normal phenomenon.

Inflation caused by other causes (e.g., economic policy mistakes, government maliciously overspending, etc.) can be avoided.

Money is just a transit point for transactions between items. It only works when the item is in circulation. Assuming that items are not circulating between them, then the money has no use value.

Money is only a measure of the value of goods, and it is directly proportional to the goods in the country. The renminbi comes from China and will eventually return to China. Suppose there are 10 items worth 100 yuan in China, and in your opinion, now we make our own money and raise its value to 200 yuan, but it is still worth 10 items.

Not only does it not work, but it will depreciate, the original 10 yuan a piece, now it costs 20 yuan a piece. If you want to improve your own economy, I personally think: export more and buy less imports.

You say it's okay to make money, but it's only useful to make foreign money, haha! Take the foreign money you make to buy imported goods, cattle.

The three causes of inflation include: an increase in the amount of money, an increase in the cost of production, and an excessive increase in demand.

1. The amount of currency ** increases.

When the amount of money increases, the amount of money in the market increases, which leads to a decrease in the value of the currency, the price of goods, and thus inflation.

2. Production costs are rising.

When the cost of production rises, in order to maintain profits, enterprises will increase their products**, which will lead to prices**, causing inflation.

3. Excessive growth in demand.

When demand grows excessively, goods in the market are in short supply, which causes inflation. This situation usually occurs during economic boom periods, when people's consumption demand increases, and the production capacity of enterprises cannot keep up, resulting in price disadvantages.

The harms of inflation are as follows:

1. Currency depreciation.

2. Wealth redistribution.

Inflation leads to a redistribution of wealth because inflation makes assets ****, and those who hold assets benefit from it, while those who don't suffer losses.

3. Investment uncertainty.

Inflation can lead to investment uncertainty because it makes future benefits and costs uncertain, which can make it difficult for investors to make decisions.

4. Increase the debt burden.

5. Reduce consumption.

6. Increase production costs.

1. Inflation caused by demand: mainly refers to inflation caused by the transition of aggregate demand**;

2. Cost-driven inflation: inflation caused by cost or supply;

3. Inflation driven by both demand and cost: inflation is not caused by a single reason, but by various factors;

4. Expectation and inflation inertia: Inertia refers to the period during which inflation lasts, which is interpreted as expectation.

These are the four causes of inflation.

Inflation refers to the depreciation of the national currency that leads to the rise in prices, which will cause the currency to depreciate in a country The price of goods continues to rise, generally and irreversibly, resulting in inflation The direct factor of inflation is that the amount of money in circulation of the country exceeds the total effective economy, and the first department continues to issue additional money due to making up for the fiscal deficit or promoting economic growth.

The essence of inflation is that the aggregate supply of society is less than the aggregate demand of society, and under normal circumstances, inflation is the inevitable consequence of the measures used by the state to effectively control macroeconomic operations.

1.Direct causes: It is generally believed that the cause of inflation is that the total amount of circulating currency in a country's market is far greater than its effective economic aggregate, resulting in excessive imitation of currency and inflation;

2.Deep-seated causes: The deep-seated causes of inflation mainly include six aspects: driven by market demand, driven by production costs, imbalanced economic structure, insufficient social supply, improper expectations of the people, and imperfect systems.

That's why it's inflationary.

A measure of inflation.

2.Consumption index: The consumption index is abbreviated as CPI, which is a macroeconomic indicator, which can reflect the changes in consumer goods and service items required by a country's residents, and affect the country's macroeconomic regulatory policies to a certain extent;

3.Gross National Product Conversion Index: The Gross National Product Conversion Index, also known as the inflation rate, is the most important indicator for judging whether a country's economy has inflation.

Inflation,refers toCurrencyCirculating conditions, depending on the currencyThe supply is greater than the actual demand for money, that is, the actual purchasing power is greater than the output supply, which leads to the depreciation of the currency, and causes the phenomenon of sustained and widespread price for a period of time.

In Keynesian economics, it arises because changes in aggregate supply and demand in an economy lead to a shift in the price level. In monetarist economics, the reason for this is that under the credit money system, the amount of money in circulation exceeds the actual needs of the economy, resulting in a comprehensive and continuous currency depreciation and price level.

Generally speaking, the issuance of paper money exceeds the amount required in circulation, which causes the depreciation of paper money and the price of **, we call this phenomenon inflation.

1.Direct causes: Generally speaking, the reason for inflation is that the total amount of money circulating in a country's market is much greater than its effective GDP, resulting in overcapacity of money supply and inflation; Dou Seesen.

2.Root causes: The root causes of inflation mainly include market demand, product costs, imbalances in economic structure, insufficient social supply, improper expectations of the people, and imperfect systems.

A measure of inflation.

1.Operator Price Index: The Operator Price Index is abbreviated as PPI, and one of the coefficient index values is to test the change of the ex-factory price of production carried out by enterprises in the industry and distinguish its transformation level;

2.Consumer Price Index: The consumer price index, commonly known as CPI, is a macro indicator, which can reflect the fluctuation of China's household needs for daily necessities and services, and to a large extent endangers the country's macroeconomic regulatory policies;

3.GDP price conversion coefficient: The GDP price conversion coefficient, also known as the inflation rate, is the most important indicator value to distinguish whether there is inflation in a country's economy.