What are the disadvantages of controlling inflation at the moment? Do you have any good ways to cope

Solution: At present, the main problem of inflation is to raise interest rates and reserve ratios and tighten monetary policy. Mainly for the sake of the **policy** of "harmony".

Restricting loans to developers to speculate on daily necessities by lending to developers (including the introduction of purchase restriction policies) and enterprises to speculate on daily necessities and pretend to rise inflation.

Disadvantages: The disadvantage is that due to the problem of loan restrictions, commercial banks with tight monetary policies are more willing to lend to some large enterprises (such as state-owned enterprises that are generally considered to have a good reputation), while most of the small and medium-sized enterprises can only lend to private loan sharks, which will cause a serious blow to the small and medium-sized enterprises that account for 70% of China's employment market, affecting employment and finally affecting harmony.

Solution: After the boss of Wenzhou ran away, ** realized the problem, so he decided to relax the loans and tax reduction measures for small and medium-sized enterprises. The main policy is to advance the people and retreat from the country.

Since I don't think I'm better than the elite of central banks and other economists, I think they're the right solution to inflation. In the words of some experts: some policies and effects cannot be put in place in one step, because you can't be there.

So we can only take small steps and add fast steps to carry out financial reform. The main reforms are in the financial structure. What is the financial structure?

I'll talk about it below:

In fact, the problem is not a solution to this inflation, because you have limited solutions now, there are only a few solutions, and the elites are also doing it. The question is how to understand from this inflation, what is causing this inflation, and I think that's the point. Analyzing this inflation, many people say that it was the 4 trillion problem in 2008, but in fact, after listening to so many expert analysis, I agree with the two main reasons, the 4 trillion problem and the financial structural problem of the non-market economy.

The Keynesianism of the 4 trillion problem is for the sake of people's livelihood, and the whole world is engaged in it. It can't be helped. The crisis that was supposed to break out in 2008 will become flat and wide after the capital injection is flattened.

So you see today that the cycle and intensity of the problem are the problems of all countries in the world after engaging in Keynesianism, including domestic and foreign hot money, and all countries in the world are grasshoppers on the same line.

The second reason: for the problem of domestic financial structure, there must be a premise for the release of money, that is, it must be a market economy. But we are a non-market economy, so the 4 trillion capital injection will flock to state-owned enterprises instead of private enterprises.

That's why we call for the retreat of the country and the advancement of the people. In addition, since foreign currencies cannot circulate freely in the country, which is a non-market economy, a large amount of renminbi circulates in the domestic market after the settlement of foreign exchange by enterprises, and if it can be reformed, then the inflation caused by foreign exchange reserves can be alleviated.

As an aside, here's what I just thought:

The biggest difference between China and India is that Indians were lazy to develop their economies during the years when the domestic situation was calm (without war), while China was engaged in reform and development as soon as they were relieved from the previous difficult struggle. It can be seen that this is a matter of character. So they lose.

What position are you applying for? Can you say no? Good luck with you.

This question is a bit of a pitfall.

Cons 1Drag down economic development 2Usury prevails 3There is too much pressure on indebted enterprises and individuals and bad money.

The current central bank's approach is targeted easing. If there is a better way, you can win the Nobel Prize in economics, or go to Zhou Xiaochuan.

1) Control the amount of currency. Since the direct cause of inflation is too much money, one of the most basic countermeasures to control inflation is to control the amount of money, adapt it to the demand for money, and stabilize the value of the currency to stabilize prices. In order to control the amount of money, it is necessary to implement a moderately tight monetary policy, control the supply of money, maintain a moderate scale of credit, and use various monetary policy tools to flexibly and effectively regulate the total amount of money and credit, so as to control the amount of money at a level that is compatible with the objective demand.

2) Regulate and control aggregate social demand. It is not enough to control inflation only by controlling the amount of money, but it is also necessary to prescribe the right medicine according to the deep-seated causes of each inflation. For demand-pull inflation, regulating and controlling aggregate demand is the key.

The regulation and control of aggregate social demand in various countries is mainly achieved through the formulation and implementation of correct fiscal and monetary policies. In terms of fiscal policy, the main thing is to vigorously reduce fiscal expenditures, strive to increase fiscal revenues, persist in balancing revenue and expenditure, and refrain from running deficit finances. In terms of monetary policy, measures to tighten credit, control money supply, and reduce the total amount of money are mainly adopted.

There are two very important ways to adopt fiscal and monetary policies to coordinate and comprehensively deal with inflation: to control the scale of investment in fixed assets and to control the excessively rapid growth of consumption, so as to achieve the goal of controlling aggregate social demand.

3) Increase the effective supply of commodities and adjust the economic structure. Inflation must be tackled on two fronts at the same time: on the one hand, aggregate demand must be controlled; On the other hand, increase the aggregate supply.

The two should not be neglected. Blindly controlling aggregate demand without focusing on increasing aggregate supply will affect economic growth, and equilibrium can only be achieved at a low level, and the previous achievements may be undone because the cost of controlling inflation will be increased. Therefore, while controlling demand, it is also necessary to increase the effective supply of goods.

Generally speaking, the main means of increasing effective supply are to reduce costs, reduce consumption, improve economic efficiency, increase the proportion of output from investment, and at the same time, adjust the industrial and product structure to support the production of commodities in short supply.

4) Other policies to cure inflation. In addition to controlling demand, increasing supply, and adjusting the structure, there are also some other policies to control inflation, such as price limits, tax cuts, and indexation.

Inflation is a phenomenon in which the market is in short supply due to the fact that the money supply is greater than the actual demand for money under the condition of money circulation. Next, let's take a look at what measures are used to control inflation.

What are the measures to combat inflation?

Since one of the basic causes of inflation is that aggregate demand exceeds aggregate supply, the fundamental way to control inflation comes from two sources: controlling demand and increasing supply.

First, control the demand

The implementation of contractionary policy, the contractionary policy is the traditional means of dealing with inflation in various countries, is the most widely used and most effective policy measure so far, the general contractionary policy is divided into contractionary monetary policy and contractionary fiscal policy.

1. Contractionary monetary policy.

The reason for inflation is that there is too much money, so to reduce the inflation rate, the central bank can reduce the amount of money in circulation.

Open market operations reduce stock in the economic system, and higher market interest rates, which encourage customers to save and reduce consumer demand.

2. Contractionary fiscal policy.

Contractionary fiscal policy is mainly aimed at reducing aggregate demand by cutting fiscal spending and increasing tax revenues. The main measures are: reducing social investment spending and increasing tax revenue.

2. Increase supply

1. Reduce taxes to improve the labor productivity of workers and increase the confidence of enterprises in investment, thereby driving the increase of aggregate supply;

2. Reduce the restrictions on enterprises and encourage technological innovation of enterprises.

3. Readjust the economic structure

The cause of inflation also includes the imbalance of the economic structure, and adjusting the economic structure and the ratio between various industries can effectively prevent the supply and demand of certain industries from driving up prices due to structural imbalances**.

1. Regulate the amount of money to balance it with demand, so as to stabilize prices;

2. Regulate and control the aggregate demand of the society, and implement the correct fiscal policy and monetary policy;

3. Increase the effective supply of commodities, adjust the economic structure, coordinate and adapt the total demand for commodities with the aggregate supply, and achieve a balance between supply and demand;

4. Other policies such as price limit, tax reduction and indexation.

The above are the measures to combat inflation.

1. Production: Inflation will break the conventional operation of social reproduction, make the income of various production sectors of society unbalanced, and some resources will be transferred to non-production areas, which will waste resources. In addition, it will hinder the normal operation of monetary functions, lead to a decrease in productive investment, and restrict the development of social investment and production;

2. Circulation: Inflation will make various companies hoard goods, which will increase the contradiction between social supply and demand. At the same time, the decrease in the value of money will also stimulate the real purchasing power of money, increase the speed of circulation, further exacerbate inflation, and is not conducive to social development.

3. Distribution: Inflation has changed the initial ratio of income distribution to wealth holdings, causing people who hold monetary assets to suffer property losses, and at the same time affecting the initial distribution of national income and the normal operation of distribution;

4. Consumption: Inflation has reduced the real income of workers, broken the equilibrium of prices, caused market hoarding chaos, and also reduced the consumption level of residents. This not only infringes on the actual interests of consumers, but also affects the development of the market.

Contractionary fiscal policy should be used to control inflation.

Inflation means that the supply of money is greater than the actual demand for money, causing the depreciation of paper money and the phenomenon of price inflation. The simple understanding is that inflation has made money worthless, purchasing power has decreased, and the original 10 yuan can buy two bags, but now only one bag can be bought. Inflation refers to an increase in the general level of prices.

Currency depreciation can lead to a persistent, widespread and irreversible increase in the prices of major domestic commodities**. For example, if the total wealth of the society is 10 stones, and there were 100 yuan coins in circulation in the market, when there are 12 stones in the market one day, but 200 yuan coins are in circulation, then the corresponding height of each stone is from 10 yuan ** to yuan, and the inflation rate is as high as that, which is inflation.

There are three types of indices that measure the inflation rate, namely the consumption index, the producer index, and the gross national product conversion index. The consumption index, abbreviated as CPI, is a macroeconomic indicator that reflects the changes in the level of consumer goods and services purchased by households.

It is worth noting that inflation has certain benefits, such as when there is too much money, these funds can be used for investment to drive economic growth; At the same time, it can improve people's ability to repay debts, and it can also increase people's wages.