Regarding inflation, I hope the masters will help

It should be the depreciation of the currency that causes inflation. There are many reasons for currency depreciation, such as printing a lot of money, etc.

Because the currency depreciates, you need to pay more to buy the same item. For example, before the currency devaluation, a bottle of Coke was yuan, but after the depreciation, it was yuan, and then inflation appeared. Of course, the price increase from an item cannot explain inflation, and needs to be measured from the country's CPI.

But currency depreciation is only one of the factors that contribute to inflation.

If consumer confidence rises and the demand for various items increases, it will lead to the producer's goods not being able to meet the needs of the demander. For this reason, the ** of items will rise, just like the pork **** at the beginning of this year. If you can't balance the relationship between ** and demand in time, it will also lead to inflation.

Our currency has not depreciated, so I think that the more serious inflation in our country before was caused by the imbalance of demand and demand, even if the domestic demand did not exceed **, but our exports were very large.

Recently, due to the financial turmoil, China's exports have declined, and it is not difficult for us to find that prices are slowly falling and inflation is slowly disappearing.

There is a theory here that a rise in GDP means an increase in aggregate demandWhen aggregate demand rises, prices rise. So the more GDP and cumulative aggregate demand rise, the more prices will rise, and inflation will appear.

Interest rate, when the currency appreciates, prices are still **, which is one of the characteristics of China's economy last year.

The reason for this must be found in the mechanism of inflation in our country.

Different from previous inflation, the main factors of our inflation this time are: the high proportion of exports and the transmission of international commodities.

While our GDP is soaring due to the excessively high export ratio, the amount of money released in excess of the actual needs of the economy due to the policy of forced foreign exchange settlement is one of the main causes of inflation.

Add to that the impact of international raw materials and energy**, and inflation is very strong.

At the same time as inflation, the long-term rapid growth of economic growth has caused great pressure on the appreciation of the renminbi.

In order to change the status quo of an excessively large proportion of exports, China has also raised interest rates, which has made the pressure of appreciation even greater.

Coupled with the arbitrage and capital speculation of international hot money, the renminbi will appreciate even more.

The combination of the above factors makes it relatively difficult to control inflation, and the actual situation is that China's interest rate hike and appreciation of the renminbi cannot stop the momentum of inflation.

In fact, looking back now, if the monetary system was not so tight and the inhibition on exports was not so great, many small and medium-sized enterprises would not have closed down; And inflation will be resolved with the financial crisis, and our country will be better able to face the current economic crisis - but this is also hindsight).

Of course it is. However, just as our country was experiencing inflation, an economic crisis broke out in the United States. In order to aid the United States and help contain the economic crisis, China pursued a deflationary economic policy.

It is true that inflation is caused by the flood of liquidity caused by the housing bubble, but the process of inflation cannot be stopped for the following reasons.

First, the main thing is the lag of monetary policy, and the rise in interest rates will not change the inflation situation in the short term;

second, the degree of currency appreciation is not sufficient to offset the degree of inflation;

Third, the renminbi has appreciated, but inflation is also in trouble abroad, and the purchasing power of the renminbi has not increased significantly.

The appreciation of the loan currency is externally appreciative, and the internal is depreciating! Therefore, when the loan is inflated, the price of goods is relatively depreciated.

Rising interest rates are a means of curbing the inflation of loans, and rising interest rates reduce the amount of money circulating in the market, thereby discouraging investment and consumption, and thus lowering prices.

More than 5 percent is considered serious inflation China is affected by the international situation.

The issuance of money, in fact, is not entirely determined by the ** bank entrusted by the state. For example, China's large number of ** surpluses, that there is no corresponding commodity goods to correspond, but it is a short banknote that cannot be issued, otherwise foreign trade commodity production enterprises will not be able to use RMB to pay for goods and workers' wages.

Another example: someone has earned 1 billion yuan from the **etc** capital market, and wants to cash in the investment to buy a house and use it for living consumption, which is also not the actual commodity goods to correspond, but the bank dares not to take it? These are the huge quantities issued without physical commodities, and there are these important money-printing tools, how can it be that "the amount of banknotes issued is less than this limit"?

How can deflation be?

The textbooks you read only talk about the principles of the people, and they are the most foolish, but they are too far from the actual practice, and they are outdated knowledge and dogmas that do not tell the truth. It also does not explain the actual economic phenomena that exist in objective practice at all.

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. Deflation refers to the decrease in the amount of money circulating in the market, the decrease in people's monetary income, and the decrease in purchasing power, which affects the price of goods to the highest level, resulting in deflation.

Positive is irreversible, because the demand for money can never be reduced.

Inflation is the price of goods that causes a country's currency to depreciate**. The essential difference between inflation and general prices**: general prices** refer to the temporary, partial and reversible prices of certain commodities due to the imbalance between supply and demand, which will not cause currency depreciation; Inflation, on the other hand, is a continuous, pervasive, and irreversible increase in the prices of a country's main commodities that can cause the country's currency to depreciate.

Inflation refers to the comprehensive and continuous depreciation of currency and the price level caused by the amount of money in circulation exceeding the actual needs of the economy under the credit money system.

The financial mavericks are a family that solves doubts for you and the general public; The products of the propaganda enterprise are familiar to everyone; Stay in the country to inherit and benefit people.

The phenomenon of inflation is: wages increase, jobs are easy to find, and prices are generally rising.

Inflation rate.

For Danqing (cpi2-cpi1) cpi1, the inflation rate at this time is (300-150) 150 = 100% The price of candy is based on the inflation rate of Mocha.

So the price of candy has risen in dollars.

This is the original question of Mankiw's Principles of Economics.

Suppose that the current ** of goods A is 10 yuan.

1) Q: What is the ** when the inflation rate is 20%?

Calculation: 10x(1+20%)=12 (yuan).

2) Q: What is ** when the currency depreciation rate is 20%?

Calculation: 10 (1-20%) = RMB).

That is, when the currency depreciates by 20%, the inflation rate should be 25%.

Under normal circumstances, the inflation rate of inflation = **** rate, but the inflation rate of the middle section of the currency is not the same as the currency depreciation rate.

You're right.

Solution: The actual name of the candy is now set to x, then:

Disband: x=

Therefore, it can be seen that the actual price of candy has risen to the dollar. The increase is 200%.

In the early stage of inflation: the purchase of assets to maintain and appreciate, and the soaring prices of real estate, calligraphy and painting are enough to explain the situation;

Peak inflation: selling assets, holding cash deposits or bond-like assets; The issue of local and foreign currencies should be considered here.

Early stage of deflation: End of deflation:

Still researching. Hehe...

It's that there is too much money on the market, prices have been rising, what about the means, consider investing, money can make money, and those who can't save it will depreciate

Inflation and deflation are not directly linked to imports and exports, they are affected by the appreciation of the local currency.

Introduce a model: p=m g+, the commodity in the initial stage of the type is g, here, the change of commodity g does not take into account the change in domestic production capacity, only imports and exports. The currency in circulation is m, and similarly, the change in m does not take into account the additional issuance of domestic policies or the currency**.

The initial price level of the model is p.

Exports are actually the export of commodities, and our foreign exchange is what commodities are exchanged for, in other words, under our hypothetical model, commodities are constantly decreasing, i.e., g becomes smaller. The U.S. dollar exchanged for exports is increasing in circulation in the Chinese market, that is, M is getting bigger, and the price P is getting bigger.

In contrast to exports, imports are the addition of commodities and the purchase of commodities from outside the market of China. If you have to spend US dollars to buy goods, you will reduce the amount of money in circulation. In the model, this naturally leads to a decrease in p, i.e., a decrease in prices.

From the model, it is easy to conclude that exports lead to prices** and imports can reduce prices.

First, the question of imports and exports is addressed in terms of the degree to which the value of the national currency contrasts with the value of the foreign currency. When the national currency appreciates, the purchasing power of the domestic unit currency relative to foreign currencies increases, that is, imports increase. Generally speaking, it is that you can buy 1 egg with 1 yuan in your own country, and when the local currency appreciates, you can buy 2 or even more eggs with 1 yuan in foreign markets; But the price in my country is not necessarily **, and 1 yuan can't even buy 1 egg.

When the national currency depreciates, the opposite is true.

Second, the result of inflation is the depreciation of paper money and the skyrocketing of prices; The result of deflation is the appreciation of paper money and the price of goods**. The question asked by the landlord is not accurate, and it is not the same as increasing imports if it is conducive to imports.

Deflation refers to the decrease in the currency, the surplus of domestic products, which leads to the rise in prices, the real value of the currency.

So first, for people who hold an equal amount of money, their purchasing power is not going down but up, so they have more spare money in their hands while maintaining their original living expenses, so that for the country as a whole, the purchase of foreign goods will rise.

Second, if deflation causes the country's external exchange rate to fall, then the country's currency is worth a month in the international market, because the country has a surplus of products, holding the country's currency can be exchanged for products, and the currency shows its true value only when it is traded, so that the country's currency has increased purchasing power internationally, which promotes the country's enterprises to buy foreign raw materials for production.

Combining these two points, deflation can boost imports.