May I ask the heroes of all walks of life, what is deflation under loose monetary policy ?

Hello friends! Hopefully, my answer can help you somewhat.

First of all, let's understand what is loose monetary policy. The so-called loose monetary policy mainly refers to the implementation of a low interest rate policy, reducing the burden of corporate loans and financing costs, releasing residents' reserves, and encouraging and expanding consumption; Implement a low reserve requirement policy to release liquidity to the market; We will loosen the control over the scale of credit of commercial banks, promote credit funds, and support economic development quickly and smoothly.

Second, let's take a look at what deflation is. Deflation is the persistence of overcapacity or insufficient demand that leads to prices, wages, interest rates, food, energy, etc.

In this case, it means that deflation has been formed under such a monetary policy.

It is the problem that the United States is facing now, a large number of additional currency, QE+QE2, but the inflation rate is still very low, still above the level, just not increasing....

Because of deflation, it is necessary to have a loose monetary policy, and if you have a lot of money, you will be ...... inflation

There is no context to your statement. Unable.

Accommodative monetary policy means:

Increase the amount of money in the market, such as issuing money directly, buying bonds in the open market, reducing the reserve ratio and lending rate, etc.

When the first bank lowers the deposit reserve ratio and lowers the rediscount or relending interest rate, it buys the first bond, puts money into the outside world, increases the circulation of market money, prompts commercial banks to expand the scale of credit, lowers interest rates, promotes the development of investment, stabilizes prices, fully employment, promotes economic growth and balances the balance of payments.

The specific policies are as follows:

1. Reduce the reserve requirement ratio, so that commercial banks can reduce the deposit reserves handed over and increase the loanable funds;

3. Banks buy valuable currency in the market and put it on the market;

4. Relax credit conditions and scale.

The main benefits are as follows:

1. Under the loose monetary policy, the amount of market currency increases, which reduces the cost of capital use and increases profits;

2. Increase the amount of money, increase people's monetary income, and promote consumption;

3. Loose monetary policy is a monetary policy used to promote economic development when the domestic economy is not sluggish.

1.Lowering the reserve requirement ratio will enable commercial banks to reduce the reserve requirement ratio and increase the amount of funds that can be loaned.

3.**Banks buy **and currencies in the market.

4.Ease of credit conditions and size.

Key Benefits: 1.Under the loose monetary policy, the increase in the amount of money in the market reduces the cost of capital use and increases profits.

2.Increase the amount of money, increase the people's monetary income, and promote consumption.

3.Accommodative monetary policy is a monetary policy used to promote economic development in the face of a domestic economic downturn.

Extended Materials. 1.Accommodative monetary policy (loose monetary policy) generally refers to increasing the amount of money in the market, such as issuing money directly, buying bonds in the open market, reducing the reserve ratio and lending rate, etc.

When the central bank lowers the reserve requirement ratio and lowers the rediscount and refinancing interest rate, it will buy treasury bonds, put funds abroad, increase the circulation of money in the market, urge commercial banks to expand the mode of credit supervision, lower interest rates, promote investment development, stabilize prices, fully employ, and promote economic growth and the balance of payments. With more money, it's easier for businesses and individuals who need loans to get loans. In general, it can make the economy grow faster.

It is a measure to promote prosperity or ward off recession. For example, the issuance of a large amount of credit is a manifestation of loose monetary policy.

2.Accommodative monetary policy: In November 2008, China proposed a "moderately loose" monetary policy in response to the international financial crisis Overall, loose monetary policy is to increase the amount of money in the market, such as direct issuance of currency, public purchase of bonds, etc.

market, reducing the reserve requirement ratio and lending rates. With more money, it will be easier for businesses and individuals who need loans to get loans. In general, it can make the economy grow faster.

It is a measure to promote prosperity or ward off recession, for example, a large amount of credit is a manifestation of loose monetary policy.

Easy monetary policy generally increases the amount of money in the market, such as issuing money directly, buying bonds in the open market, reducing the reserve ratio and lending rate, etc. When the first bank lowers the reserve requirement ratio and lowers the interest rate on rediscount and re-lending, it buys the first bond, puts money into the outside world, increases the circulation of money in the market, prompts the commercial banks to expand the scale of credit, lowers the interest rate, promotes the development of investment, stabilizes prices, fully employment, promotes economic growth and balances the balance of payments.

The more money there is, the easier it is for enterprises and individuals to borrow money, which can generally make the economy develop faster, and is a measure to promote prosperity or resist recession, such as a large amount of credit released by ** is a manifestation of loose monetary policy.