Using the principles of inflation and deflation, the current economic situation in our country is di

Now not only is I worried about inflation, I think stagflation is also very likely, although the current active fiscal policy and the overall trend of moderately loose monetary policy, that group of bricks have always said that it will not change for the time being, and they are all there to say that they are worried about demand-pull inflation, saying that China's CPI is negative and negative... Don't you notice that the house prices are higher now than in 07, and the prices are higher, especially the price of vegetables, which is more obvious, and I, a person who never buys vegetables, can't stand it!! Industrial raw materials ** is also soaring, I think the future is likely to produce cost push and international imported inflation, then the central bank will definitely adopt a tightening policy, in fact, a few days ago to raise the statutory reserve ratio is a signal, in the current Chinese economy is not fully warmed up then the next round of depression will come, and then cause unemployment, then unemployment and inflation coexistence of stagflation will come completely.

I think that in response to the financial crisis, the macro fiscal and monetary policies adopted by various countries are a new experiment, and China is even more, but I always feel that China's grasp of the policy degree is not very good, and we Governor Zhou plus his group of bricks, the level is really not flattering, and the adjustment of interest is directly on a roller coaster

The current economic situation in China is that there is a risk of inflation expectations. Breaking down this sentence, that is, China is not yet an inflationary economy, but inflation may occur abroad.

Inflation expectations refer to the fact that people have estimated that inflation is coming, and they plan to prepare in advance to avoid inflation from causing damage to themselves, but the measures to prevent inflation themselves will cause the rise of assets**, that is, the expectation of inflation itself will accelerate the arrival of inflation.

Inflation expectations, simply put, are people's psychological expectations of the inflation rate. A simpler algorithm is to add up the inflation rates of previous years and divide them by years, which is effectively an arithmetic average.

Once inflation expectations are formed, inflation is not far off. And there are no inflation expectations yet, but there are factors in the economy that cause them. For example, the recovery of CPI, which is the most effective indicator of inflation.

Inflation is no longer simply inflation. It has more of a human element. China's current economic situation is that inflation is inevitable, and the reason for this is that the economy is backward and is greatly affected by the United States. The United States has broken the simple supply and demand.

As for austerity, it is conceivable that the wages of ordinary people have not risen much. For the current economic shock, it can be said that the money is getting less and less. And not more and more.

There is less money, prices go up, and purchasing power goes down. Resulting in such a deformed austerity. Think it's terrifying.

There is no possibility of inflation, at most it will fluctuate, ** behind it.

1.Demand-pull inflation is inflation caused by excessive growth in aggregate demand.

2.Cost-driven inflation is also known as supply-based inflation, which is the general level of the general level caused by the increase in the production cost of manufacturers.

3.Inflation driven by a mix of demand and costs.

In practice, the cause of inflation is not single, and the **level** that is promoted at the same time for various reasons is the inflation promoted by the mixture of supply and demand.

This should give you a full score I hope it will be useful to you...

Macroeconomic. Inflation arises from the following causes: demand-driven inflation; cost-driven inflation; inflation driven by a mix of demand and costs; Expectations and inflationary inertia.

The impact is as follows: the most direct is the decline in the purchasing power of the currency and the depreciation of the renminbi internally. Inflation has exacerbated the flow of money.

speculation, inflated assets, pushing up asset bubbles; The people's property is deprived of their property due to inflation taxes; The cost of living has increased and life is stressful.

Structural inflation – Even if aggregate demand and aggregate supply are in balance, changes in the structure of economic sectors can lead to a price level. The production efficiency of the two divisions is different, the production department and the service department. Monetary wages in the productive sectors are growing faster, while the less productive services sectors are under pressure to increase wages, but productivity cannot increase at the same rate.

As a result, the service sector has generated cost-push inflation. This is how structural inflation works.

Rational expectation of inflation – when the factors of the economy are fully employed, the aggregate supply curve.

It is no longer elastic and has become a completely vertical line, and the actual output has reached the level of potential output. When aggregate demand increases, it only results in a proportional level and has no effect on real output. Because the public will be based on the monetary policy of **.

Carry out anticipation, and after many iterations, you can understand the motivation of the first monetary policy. As a result, the expansionary monetary policy of ** will be ineffective, so the expansionary monetary policy of ** will not only fail to promote the economy but cause stagflation.

Economics in general.

Commonly used Hengyou refers to the Phillips curve.

to describe the substitution between inflation and unemployment: when the unemployment rate is low, the inflation rate.

is higher; When unemployment is high, inflation is low. Some economists also believe that in times of inflation, people may expect higher inflation rates.

Shifting the Phillips curve to the right means grinding higher inflation for the same unemployment rate. This is when the Phillips curve deteriorates. And when the Phillips curve fails, the curve is perpendicular to the horizontal axis, i.e., no matter how high inflation is, a certain unemployment rate remains.

1) Inflation refers to the monetary phenomenon of currency depreciation and continuous price improvement due to excessive money supply.

2) The direct cause is the excessive money supply, but there are deeper reasons.

1. Demand, including fiscal deficit, credit inflation, investment demand expansion and consumption demand expansion;

2. Cost push, including wage push and profit drive;

3. Structural factors, imbalance of economic structure and sectoral structure;

4. Other reasons, such as insufficient supply, improper expectations, system transformation and other factors.

3) The characteristics of inflation in China are: 1. Short-term. China is a socialist country, and the operation of the economy is planned on the whole, so whenever there is inflation, the state will immediately take measures to stop it. 2. Non-policy.

In the history of more than 50 years, there have been several times of inflation, all of which were caused by special reasons and social environment at that time. In addition, the manifestations of inflation before and after the reform and opening up are also different.

People are very afraid of inflation, and they are as disgusted with prices as they are. Many people know the word inflation, but they don't know that there is also the word deflation. Although deflation is not famous, deflation is not easy to bully, and it will cause great harm to economic life as long as it moves lightly.

Deflation is not a decrease in the price of one or two goods, but the overall level of prices is **, or even continuous**. Some people will say, is the price ** not good? Could it be that it is good for prices to rise on the front basis?

Prices and prices are not good, and it is best to maintain prices in a state of balance. Prices**, things are generally not easy to sell.

In actual sales, many merchants use price reductions to attract consumers to shop. The price is the first as a whole, and the profit margins of merchants will shrink sharply. And the cost of wages, raw materials and other expenses is not said to be reduced, not a day's work.

Costs will shrink the merchant's profits again. In the long run, how big a business is not able to withstand the toss, there are two roads in front of the business, one is to reduce production and reduce staff, and the other is to close.

Most businesses will adopt the method of reducing production and reducing employees, which will lead to an increase in the number of unemployed people. Losing the ability to create wealth, people will clutch their purse strings, and they will not dare to spend money, and businesses will not dare to invest in expanding their stores. Product sales will become more and more difficult, and when product sales are difficult, prices will be lowered again, and then layoffs, and the cycle will continue.

At the end of the 20th century, the Asian financial crisis broke out, the world economy struggled in the shadow of recession, and China's economy was also deeply affected by deflation. Of course, China will not sit idly by, a large number of policies have been introduced, and a prudent monetary policy has come into being, and the time for the performance has come.

From October 1997 to February 2002, the People's Bank of China lowered interest rates six times in a row, greatly reducing the loan burden of merchants. In 1998, China issued hundreds of billions of yuan of long-term construction bonds, built a large number of major basic projects, and stripped commercial banks of their non-performing assets. After the introduction of various policies, the economy has entered a new round of growth.