Is it an ideal economic situation for prices to rise steadily?

Depending on the situation, there are several reasons for the rise in prices: rising costs, large market demand (supply exceeds demand), and large circulation of banknotes (inflation).

The third situation will also be reflected in wages, for example, when the average wage increases, prices will naturally follow.

Slow price growth and moderate inflation are conducive to consumption and GDP growth.

The key to the stability and decline of prices lies in the mechanism of problem formation; with the rise in the rate of economic growth, the decline in prices will enable the social economy to grow at an appropriate rate in a stable environment, and the decline in prices in the international recession type will have a very obvious threat effect on economic growth.

Stable prices refer to keeping the overall price level relatively stable and not fluctuating largely, and on this premise, the unreasonable system should be adjusted and reformed in a planned and step-by-step manner. Including the relative stability of the overall price level and the specific volatility of hunger, price stability is not the same as freezing prices. Freezing prices runs counter to the objective requirements of the law of value and other economic laws, is inconsistent with the economic model of combining the planned economy with market regulation, and is detrimental to economic development and the improvement of the people's living standards.

Price stabilization is to curb inflation, avoid deflation, and maintain the stability of the currency value, so this goal is often called stable currency value.

There are differing views on the meaning of price stability, with prices of 3% per annum being tolerable or 5% per annum being acceptable. Economic growth without inflation is the ideal state that all countries are striving for, but because of the different economic conditions of each country and the different stages of economic development within a country, we can only proceed from the actual national conditions and control the price rate within an acceptable range. At the same time, the monetary policy aims to stabilize prices, which mainly reflects the mediating function of the currency, which is measurable and controllable.

In the real economic operation, what type of price index is used as an evaluation index is still in the process of further understanding, such as whether **transaction** and real estate transaction** should be included in the price target, which needs to be further explored.

The goal of price stability is a macroeconomic adjustment goal for the vast majority of countries in the world, and it is also the first important goal for banks to implement monetary policy. The so-called price stability refers to the fact that the general price level does not fluctuate significantly or sharply in the short term, but it does not exclude the change of a certain commodity ** relative to other commodities**, and the inflation rate is generally used as an indicator to measure and whether the price is stable or not.

Stable prices are a prerequisite for economic growth; And economic growth is the material basis for stabilizing prices.

Economic growth and price stability are not necessarily the same, as there is a complex causal relationship between the two.

On the one hand, economic growth can lead to prices**. With the rapid development of the economy, factors such as increased corporate investment, increased consumer demand, and rising production costs may lead to an increase in the price level. In addition, when the economy is growing too fast, there is too much money**, which can also lead to inflation and make prices unstable.

On the other hand, price stability can also boost economic growth. When prices are stable, businesses and consumers are better able to optimize future costs and benefits, which are more conducive to investment and consumption. In addition, price stability can boost international and capital flows, improve international competitiveness, and further promote economic growth.

Therefore, the relationship between economic growth and price disturbance is interacting and mutually restrictive. In practice, appropriate macroeconomic control measures should be taken to maintain a balance between economic growth and price stability in order to achieve sustainable economic development.

The background and significance of the research on the impact of RMB appreciation on the economy include international competitiveness, capital inflow and balance of payments, price stability, and economic growth.

1. International competitiveness: The appreciation of RMB will lead to China's export commodities, reduce China's export competitiveness, and affect China's international competitiveness.

2. Capital inflow and balance of payments: The appreciation of the renminbi will attract more foreign investors to invest in China, but it will also lead to a surplus in China's balance of payments, which will affect the balance of payments.

3. Price stability: The appreciation of the RMB will lead to a decline in China's imported goods, which in turn will affect the price level of the domestic market.

4. Economic growth: The appreciation of the RMB may lead to the impact of some export enterprises, but the appreciation will also bring more foreign investment and technology, which will bring a positive effect on China's economic development.

When I was wandering around, I saw your question and glanced at the first floor, which really made people laugh and cry. This is actually a short-term change problem in the AD-AS model, and to make it easier for you to understand, I found a graph.

In the figure above, LAS is the long-term aggregate supply curve and AD is the aggregate demand curve. However, the short-term aggregate supply curve SAS may move due to changes in input factors of production, such as the oil production cut you proposed leading to a difference in oil land**, in addition to agricultural crops, fluctuations in the foreign exchange market, etc., which may cause changes in the SAS curve.

Due to the rise in the input (or cost) of factors of production (such as: oil), enterprises are forced to reduce output under the same output conditions, demanding a higher price level, or at the same level. As a result, the SAS curve moves to the upper left to SAS, reducing the amount of production that would otherwise exceed potential national income (OY)* to OY.

The equilibrium point is moved from E to E', the market price level moves from p to p'。As a result, production falls below the level of full employment, and ** rises above the level of full employment. Manifesting in the real economy, that's what you say:

Prices**, the total value of production has fallen, and unemployment has risen.

Answer]: A price stability is the general stability of the overall price level, and item A is correct; Price stability is not about zero inflation, but about allowing a low and stable inflation rate. Price stability does not refer to the fixation of each commodity, nor does it refer to the fixation of the overall level, but refers to the relative stability of the index, and item d is wrong. So the answer is A.

Under the condition that demand remains constant, the total output and the overall level of DU ** change

The movement is in the opposite direction of the DAO, that is, the total output is returned.

Increase, decrease; Or the price level rises, and the aggregate supply decreases.

Under the condition of causing changes in demand, an increase in the short term will lead to an increase in aggregate supply. This is because the producer is blind, and the increase in ** will make it want to produce more goods profitably, which causes an increase in the aggregate supply.

We all know that we need to manage and invest financially, but most people ignore a basic question that should be clarified first: how much do prices rise every year? Find out what the minimum return on investment is.

But do we have a definite idea of how prices will increase each year? Is it equal to the Consumer Consumption Index (CPI) or the Retail Sales Index (RPI)?

Unfortunately, no. Since 1984, China has released the CPI index every year, which represents the increase in household consumption compared with the previous year (the so-called month-on-month), but how much this year has risen compared with a few years ago cannot be seen at a glance, and this is more in line with our habits and more intuitive.

As a simple practical example, let's say you bought a 100 yuan long-term treasury bond in 1983 and started collecting 5% interest every year for 84 years. So to this day, has the investment income of Treasury bonds beaten the CPI? The CPI announced by the state in 2019 is that in recent years, it has been 2 o'clock or even 1 o'clock, so last year's national bond yield exceeded the price of 5%**?

The interest rate on government bonds is not as high as 5%, and the interest received in previous years should also be considered for discounting, so let's start with a simplified example, and we will continue to analyze it later).

As can be seen in the table, the total principal and interest of the investment in treasury bonds for 36 years since 1984 is 280 yuan, but it is not clear how much prices have risen during this period, and of course there is no way to know whether investment has defeated inflation.

Therefore, it is necessary to restore all the official CPI data for each year to 1983 as the base (fixed base) in order to compare the high and low of the two. In fact, almost all investments need to be compared with the prices at the time (fixed basis), rather than the year-on-year comparison.

When the results came out, it was suddenly clear, and it can be seen that the prices in 2019 were in 1983; The total principal and interest of 100 yuan treasury bond investment is 280 yuan, which is 280%. It is clear that investment has significantly underperformed inflation. The two are expressed in images like this.

Point 1: So far, we have come to the first important conclusion of novice investors: looking at the CPI of only 2 or 3 points, it is actually very scary to accumulate! The price ** usually moistens things silently, but after a few years of accumulation, it is "children do not know each other".

So how high has inflation been on average each year over the past 30 years? It turned the Treasury bonds with an annual yield of 5% into scum in seconds? Obviously, it is not equal to the average value added of the CPI index in each year, because as mentioned earlier, the CPI is based on the increase in the previous year, and what is needed here is based on the increase in 1983.

If the average annual rate of increase in prices is x,