Does anyone know the concept of inflation and its characteristics?

a) Controversy over definitions.

There has been a long-standing debate among Western economists about this. It can be broadly divided into "monetary faction" and "price faction".

The monetarists "hold that inflation is an ordinary rise in prices, and that this rise is caused by an excessive amount of money." "Excessive money chasing relatively insufficient goods and services".

The "price faction" advocates defining inflation in terms of the rise in the general price level or the general ** level. Keynes pointed out in his book "The General Theory of Employment, Interest and Money" that when full employment is reached, the increase in effective demand caused by the increase in money supply no longer has the effect of increasing production and employment, and prices will increase in proportion to the increase in money supply.

The essence of the disagreement between the two factions lies in the explanation of the reasons for the rise in prices.

ii) General Definitions.

Inflation is the persistence of the general price level**. In understanding this definition, special attention should be paid to two points:

Inflation does not refer to a one-time or short-term general level, but rather to a persistent level.

Inflation does not refer to an increase in individual goods** or in a particular industry**. Rather, it is the total level of **.

Inflation is a general and sustained rise in the price level. According to the severity of inflation, it can be divided into three categories:

First, creeping inflation, also known as moderate inflation, is characterized by a low and relatively stable inflation rate.

Second, accelerated inflation, also known as Mercedes-Benz inflation, is characterized by high inflation rates (generally in the double digits or more) and is intensifying.

Third, hyperinflation, also known as hyperinflation, is characterized by a very high inflation rate (the standard is a monthly inflation rate of more than 50) and completely out of control.

There is also a type of suppressed inflation, also known as hidden inflation. This inflation refers to the fact that there is inflationary pressure in the economy, but due to the strict regulation and rationing system in place, inflation does not occur. As soon as the ** is deregulated and rationing is lifted, there will be more severe inflation.

Inflation: refers to the phenomenon of depreciation of paper money and price **. The occurrence of paper money in excess of the actual demand in circulation is one of the causes, not the only cause, of inflation.

The paper money we use is actually just a symbol, which has no value in itself, it represents the value of social wealth, and it can only be "represented". The value of social wealth does not change with the amount of paper money. When the number of banknotes increases greatly and wealth does not increase, the value of banknotes depreciates and all prices are **.

This is the popular explanation of inflation.

Refers to an increase in the average level (i.e., the average) level of all goods and services, which is actually a currency depreciation. In general, inflation is a monetary phenomenon, and only an excessive increase in money triggers inflation.

Inflation: Under the condition of paper money circulation, due to the excessive amount of money, the purchasing power of the money with the ability to pay exceeds the supply of goods, thus causing the continuous depreciation of the currency and the continuous improvement of the general price level.

Inflation refers to a sustained and general increase in the general price level over a certain period of time, or a sustained depreciation of the value of money over a certain period of time.

Characteristics (manifestations) of inflation: depreciation of paper money, prices**.

What is inflation and why is there inflation.

<> inflation refers to the economic phenomenon of persistent prices and declining purchasing power of money. It refers to the economic phenomenon in which prices continue to decrease and the purchasing power of money decreases, that is, the quantity of goods and services purchased by a certain amount of money decreases in a certain period of time, resulting in a decrease in the value of money. Inflation is an economic phenomenon, which will affect the development of the economy, the consumption behavior of consumers, the investment behavior of investors, the business behavior of enterprises, the fiscal policy of the first country, and the economic situation of the society.

There are many reasons for inflation, the most common of which is an increase in the amount of money, and an increase in the amount of money will lead to a decrease in the value of the currency, which will lead to prices, which will lead to inflation. In addition, inflation may also arise due to fiscal policy, economic policy, monetary policy, policy and other reasons.

Inflation adversely affects the economy, it leads to prices**, which reduces the spending power of consumers, thus affecting the development of the economy; It will cause the investment behavior of investors to be affected, which will affect the development of the economy; It will cause the business behavior of enterprises to be affected sensitively, which will affect the development of the economy; It will lead to the impact of the fiscal policy of **, which will affect the development of the economy; It causes the economic condition of the society to be affected, which affects the development of the economy.

Therefore, effective measures should be taken to control inflation in order to maintain the stable development of the economy. Fiscal policy, economic policy, monetary policy, policy and other measures can be adopted to control inflation in order to maintain the stable development of the economy. For example, fiscal policy can be adopted to control the amount of money to reduce prices; ** Economic policies can be adopted to control prices in order to reduce prices; ** Monetary policy can be adopted to control the circulation of money in order to reduce prices; **Policy**, control**, to reduce prices.

Through these measures, inflation can be effectively controlled, so as to maintain the stable development of the economy. The bridge was defeated.

Inflation refers to the phenomenon of sustained and widespread price prices over a period of time because the money supply is greater than the actual demand for money. Its essence is that the total demand of the society is greater than the total supply of the society, which is manifested in the depreciation of paper money and the price of goods. The extent of this is measured by the rate of inflation.

Inflation rate Price index 1. An index is a relative number, which is an indicator that reflects the relative change of a certain phenomenon in two periods. To put it simply, 1 piece of clothing is sold for 100 yuan at the beginning of the year and 110 yuan at the end of the year, and the end of the year is 110% of the beginning of the year, and the price has risen by 10%.

Once you know how to calculate the inflation rate, it's time to calculate the price index. The price index can be calculated in different ways in the actual implementation process. Products are divided into consumer goods and means of production, and if only the price level of consumer goods is considered, the retail price index, also known as the consumer price index (CPI), is obtained when calculating.

Inflation refers to the phenomenon of continuous and widespread price depreciation for a period of time 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. Its essence is that the aggregate demand of society is greater than the aggregate supply of society (supply is much less than demand).

Types of Inflation:

Low inflation

Low inflation is characterized by being slow and can. We might define it as inflation with an annual inflation rate of 1 digit. At this time, prices were relatively stable, and people were more trusting of money.

Galloping inflation

This inflation occurs when a stander of price level is in 20%, 100%, or even 200% per annum in the 2 or 3 digits. Once this inflationary situation is formed and entrenched, it can lead to serious economic distortions.

Hyperinflation

In the most hyperactive inflation, where money has almost no fixed value and prices are growing all the time, the catastrophic effect of which is that the market economy becomes useless.

Inflation can be divided into demand-driven inflation, cost-based inflation, and internationally imported inflation.

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What is Inflation? Attach a joke. The wife asked her husband:

What is Inflation? The gentleman replied: Your measurements used to be 36-24-36, but now they are 48-40-48, and although you have all the numbers greater than before, your value is lower than before.

This is "inflation"!

Inflation refers to the monetary phenomenon of currency depreciation and price due to excessive currency. Inflation is measured mainly by the following indicators: consumer price index, wholesale price index and GDP deflator.

The causes of inflation can be divided into: demand-pulled, cost-pushed, structurally unbalanced and expected inflation;

The role of the market mechanism is divided into: open inflation and hidden inflation.

Demand pull-up refers to the surge in social consumption expenditure and investment expenditure in the operation of the economy, and the excessive increase in aggregate demand, exceeding the supply of goods and services at the fixed level, thereby causing currency depreciation, the overall price level, and inflation.

Cost push, on the other hand, refers to the phenomenon of sustained prices due to rising production costs. The reason for the increase in costs is mainly due to the demand for higher wages by the trade union forces and the monopolies enacted by monopolistic industries and monopolistic large corporations in pursuit of monopoly profits**. Therefore, cost-push inflation is divided into wage-push inflation and profit-push inflation.

Structural factors, that is, in addition to aggregate factors, even when aggregate demand and aggregate supply are in equilibrium, due to problems in the economic structure, the price level will continue to rise, leading to inflation.

In addition to demand-pulling, cost-pushing, and structural factors, there are other causes of inflation, such as insufficient supply, improper expectations, and institutional factors.

Inflation: refers to the phenomenon of sustained and widespread price depreciation for a period of time caused by the fact that the money supply is greater than the actual demand for money, that is, the actual purchasing power is greater than the output supply, resulting in the depreciation of the currency. Its essence is that the aggregate demand of society is greater than the aggregate supply of society (supply is much less than demand).

Reasons: 1. Demand pull 2, cost promotion 3, mixed demand and cost promotion 4, expectation and inflation inertia effect and impact: the cost of production increases and drives the overall level, and wages are the main part of production costs.

Wages increase the cost of production, and at a given level, manufacturers are willing and able to supply less in quantity, thus shifting the aggregate supply curve to the upper left. Negative Effects: Commonly considered to:

Impact on economic development. Inflationary prices distort the signal, easily lead producers astray in production, lead to the blind development of production, cause abnormal development of the national economy, and deform the industrial structure and economic structure, thus leading to the imbalance of the proportion of the entire national economy. When the deformity of the economic structure caused by inflation needs to be corrected, the state will inevitably adopt various measures to curb inflation, and as a result, production and construction will drop sharply and the economy will shrink, so inflation is not conducive to the stable and coordinated development of the economy.

Impact on income distribution. The inflationary depreciation of the currency has caused the living standards of some residents with lower incomes to continue to decline, making it difficult for the vast number of residents to improve their living standards. When inflation persists, it has the potential to cause social unrest and instability.

Impact on foreign economic relations. Inflation will reduce the export competitiveness of domestic products, cause an outflow of foreign exchange reserves, and thus depreciate the exchange rate. Positive Impact:

.It can alleviate the influx of external liquidity, alleviate the asset bubble crisis (interest rates are low during the inflation period, and foreign funds are generally reluctant to flow in) and reduce the tax reference for the country.

Inflation, generally defined as: under the credit money system, the currency depreciation and price level caused by the amount of money in circulation exceeding the actual needs of the economy are comprehensive and continuous** - in more layman's terms: the price level in a given economy generally and continuously increases, resulting in a continuous decline in the purchasing power of money.

Generally speaking, inflation inevitably causes prices, but it cannot be said that all prices** are inflation. There are many factors that affect prices.

The amount of banknotes issued must be limited to the amount required in circulation, and if too much banknotes are issued, causing the banknotes to depreciate, the price will be **.

The value of the commodity is proportional to the value of the commodity, and the increase in the value of the commodity will be.

**Affected by supply and demand, when the supply of goods exceeds demand, **will**.

Policy adjustments, straightening out the relationship will cause.

Poor circulation of goods, poor market management, arbitrary fees and fines will also cause the first commodity to be fined. It can be seen that inflation is only possible if the price of goods** is caused by the issuance of too much banknotes.