Is inflation underproduced and prices high, or is there more production of normal money leading to h

Let's first review the mechanism of money issuance, the principle of inflation.

Currency issuance Taking China as an example, GDP has increased every year, because for example, it is 10%, then the corresponding currency in the circulation market should also increase by 10%, otherwise there will be liquidity problems. **Banknotes are printed regularly throughout the year.

However, there will be some discrepancies between the amount of money issued each year and the growth of real GDP, so there will be a deposit reserve, and the more money is issued, the deposit reserve will be raised.

And vice versa, to regulate the amount of money in the market.

There are three causes of inflation.

Demand-pulled, cost-driven, and structural.

There will be many factors causing inflation every time, but basically the above three reasons, and rarely one factor will lead to large-scale inflation, which is often caused by multiple factors at the same time.

1.The specifics of each inflation are different and cannot be generalized.

2.There is little chance that inflation will be caused by underproduction. Because production volume is a factor that the market is more capable of controlling.

Scarcity of resources, such as raw materials, is often more likely to be the cause of inflation. For example, the root cause of China's inflation this time is the soaring international oil market.

3.A surplus of money can trigger inflation. However, theoretical research and practical experience in this area have reached a certain level, so it is less likely that this alone will cause persistent inflation.

Of course, once the market has formed an expectation of inflation, it will cause inflation to persist for a long time, even if the actual economic factors that caused inflation no longer exist.

I can't even understand what I said.

I think inflation is due to too much investment in the market and overheating the economy, which leads to insufficient production and causes ****, but it can trigger production enthusiasm and reduce unemployment.

On the other hand, there is bound to be underproduction when there is inflation, and if there is overproduction, there will be an economic crisis.

Inflation leads to ****.

Inflation will be price**, not necessarily vice versa.

First of all, it was said that currency depreciation is inflation. So what are the reasons for currency depreciation? 1. Excessive issuance of currency by the central bank will cause currency depreciation.

2.People's distrust of issuing currencies can also cause currency depreciation. (e.g., the Golden Yuan Coupon issued by the National **) 3

The excessive demand for gold and silver will also depreciate the currency pair.

There are also people who say that price ** is inflation, so what factors will cause price **? 1.Currency depreciation, the lower the value of the currency, the higher the price level, and the above.

2. The value of the commodity, which should be measured by the labor time, so the value of the commodity increases (the labor cost increases), and the price will **. 3. Supply and demand, the price level is also related to supply and demand. For example, some vegetables, when they first come out, are in short supply, and they will be expensive over time.

There will be more supply than demand, ** will come down. 4. The foreign exchange market, the last one is the foreign exchange market, if the exchange rate of foreign exchange rises, the raw materials purchased by foreign exchange will also rise in prices.

Having said all that, the reason for the price **. In fact, only the first one is the definition of inflation. None of the following are any.

To give a definition, inflation is an economic phenomenon in which the purchasing power of money is greater than the amount of commodities due to the excessive amount of money in circulation, which causes currency depreciation and prices.

Inflation is related to prices**, but not necessarily. ......That said, inflation can indeed bring prices**. However, there can be other reasons for prices, not all of which are caused by inflation.

Inflation refers to the fact that the amount of money circulating in the market exceeds the value of the commodity itself.

In this way, it is bound to cause a result: there is more money in hand, but there are only so many goods, so the ** of goods will be improved ......In order to buy the same goods, you need to spend more money ......Prices are thus **.

However, there is no single link between prices** and inflation......Other factors can also contribute to prices**.

For example, if there is a temporary shortage of goods in a certain place due to poor logistics, local prices will rise. ......This situation has nothing to do with inflation.

For example, an increase in the cost of production of a certain commodity will also lead to an increase in the cost of production of this commodity, and this situation has nothing to do with inflation.

Therefore, the price of goods** can be caused by the following three situations:

1. Inflation leads to prices**.

2. Temporary shortages of goods can cause prices**.

3. The cost of the commodity itself increases, which can cause prices.

It can be seen from this that inflation is not the only factor in prices. ......The two are linked, but not necessarily linked.

In fact, the increase in the cost of goods itself is an inevitable trend ......With the development of production, labor costs will inevitably increase, which will inevitably lead to an increase in commodity production, transportation, and operating costs, and its production will also increase. ......This has nothing to do with inflation.

Inflation is defined as the depreciation of currency by depreciating the currency by having more money in circulation than is necessary for the circulation of commodities.

2. There are two reasons for the price of goods: one is that in the case of no currency depreciation, the cost of commodities increases to make the **** of commodities, and the other is that the cost of commodities does not increase, and currency depreciation makes the **** of commodities.

3. Therefore, in the absence of currency depreciation, the increase in the cost of commodities makes the **** of commodities not inflation; The cost of commodities has not increased, and the depreciation of the currency has made the **** of commodities inflationary.

4. Prices are inevitable. Because productivity is constantly evolving, the value of labor is constantly increasing. With the development of productive forces, prices will inevitably be the same.

Because the value of commodities is inversely proportional to the productive forces, it is manifested in practical life that the value of commodities does not change when the productive forces develop, but increases the value of the commodities exchanged with them. For example, the productivity of industrial labour has increased, and the value of industrial products has not changed, but the value of agricultural products has increased.

The value of labor is the main component of the value of commodities, and the value of labor is constantly increasing, and the value of commodities is bound to continue to increase.

5. Inflation and deficit policies are two different things. Inflation is the depreciation of money by having more money in circulation than is needed to circulate goods. The essence of the deficit policy is to make use of idle funds in society for production, so as to balance production and consumption.

6. The limit of the deficit policy is that it cannot exceed the total amount of idle funds in society. If it is exceeded, there will be more money in circulation than is needed for the circulation of goods, and inflation will occur.

7. Inflation has no benefit at all to social and economic development, and even moderate inflation is not a way to promote economic development.

To put it simply, inflation is only paper money circulation conditions, should be greater than the actual demand for money, that is, the actual purchasing power is greater than the output supply, resulting in currency depreciation, which is why many of us are currently questioning why prices, now so high, we 10 years ago a pound of eggs 5 yuan, now a pound of eggs 15 yuan, in just 10 years, the ** of eggs rose by a pound of about 10 yuan, this is not actually inflation and not prices**.

Inflation is because of currency depreciation caused by a period of sustained and widespread price phenomenon, in economics inflation refers to the overall price level continues to rise, generally using the consumption index CPI to measure, there are clear international regulations, if a country's CPI index for six consecutive months in more than 3% is called inflation.

And the price ** refers to the general price level of the general **, so the general price level refers to the total price level including all goods and services, inflation refers to the issuance of paper money more than the actual amount of money in circulation, thereby causing the depreciation of paper money, the phenomenon of price ** Generally speaking, in life, the inflation we are talking about will inevitably cause the general price **, but it cannot be said that all prices ** are inflation.

It can be seen that prices** and inflation cannot be equated with inflation, including prices**, but the concept of inflation has a hypothetical pre-emptory. That is to say, this price ** is mainly caused by the demand side, especially monetary factors.

Inflation leads to the depreciation of currencies, which naturally leads to prices**

All saving money is the least smart way to manage your money, but it's the safest.

In addition, commodities such as petroleum, chemicals, non-ferrous metals and other resource-based materials will also have obvious driving force, and indirectly to non-durable consumer goods, such as electronics, automobiles, clothing, real estate and other industries.

If inflation occurs, such as meat, vegetables, eggs, fruits, clothes, etc., there will be ** situation, and there is an extreme situation that luxury goods will also skyrocket.

In the event of inflation, it may lead to the rise in the price of basic necessities 1, food and other necessities of life, **insufficient, people have to spend higher** to buy 2, building materials **will**soon**. This is of course also due to house prices**. If housing is needed because the economy is expanding, home prices will be**.

Grains, vegetables, all kinds of meats.

Inflation is the depreciation of a country's currency that causes the price of goods. Inflation refers to the phenomenon that the demand provided by the currency exceeds the actual demand of the currency itself, resulting in a widespread and continuous increase in the level of consumption during this period, which is manifested in the form of depreciation of banknotes, prices, etc. Inflation is a monetary phenomenon everywhere, and it can only be a monetary phenomenon caused by the fact that the quantity of money grows faster than the rate of output.

Inflation mainly leads to prices, lowers the real income level of the people, leads to the depreciation of the national debt, etc. On the surface, inflation has raised the economy too fast, but in fact the economy has developed excessively, and in the long run, it is difficult for the economy to have a healthy growth. This effect is often summarized as price increases, social unrest.

But in reality, the more serious adverse effect of inflation is the destruction of the market economic system, which can lead to the misdirection of natural resources, which then leads to incorrect work and labor guidance, and leads to social problems. This article mainly writes about what inflation is, and the content is for reference only.

First of all, the overall level has risen, and we need to understand the concept of inflation. Inflation refers to the phenomenon that the amount of money increases, resulting in aggregate demand exceeding aggregate supply, an overall increase in the level, and a decrease in the purchasing power of money. In the context of inflation, prices** are inevitable.

Secondly, the impact of the epidemic is also one of the reasons for the price of goods. Due to the outbreak of the epidemic on a global scale, the global logistics capacity has declined, which has also affected the production, transportation and sales of goods. These concise factors affect the **chain, leading to the price **.

In addition, the influence of weather is also a factor in the price of goods**. Droughts, floods or other natural disasters can affect the production and transportation of crops, which in turn leads to the loss of goods.

Finally, market competition is also one of the causes of prices, especially in certain monopolistic markets, where some producers can control and maintain high profit margins.

In daily life, we can slow down the impact of prices on us by grasping more information, digging out more preferential goods, or paying attention to changes when purchasing in supermarkets.

Inflation itself is not the original cause, but the result of a crack.

The price ** is also a kind of fruit and fruit, but the two cannot be directly equated.

Only a comprehensive and consistent price increase** indicates that inflation has occurred. Inflation manifests itself as a broad and persistent price increase**.

Prices refer to the general price level. Prices** are one of the manifestations of inflation. Certain commodities, such as beef or rent, are not inflationary.

Because some commodities may decline, and others may decline, the two cancel each other out. Only a general rise in the ** of various goods and services can reduce the purchasing power of money.

Prices can be in the form of overt potato rent macros or covert ones. For example, by reducing product quality, vouchers and other control measures, on the surface, prices do not appear, but if the regulations are relaxed, prices will be universal, so this is a kind of hidden inflation.

In December 2019, the national household consumption** (CPI) increased year-on-year**, the same as the previous month. For the whole year of 2019, the national residents' consumption was **compared with the previous year**.

According to the theory of neo-Keynesianism, there are three main reasons for the price of goods

Demand pulls on. From the perspective of aggregate demand, the cause of prices is that the aggregate demand is excessively increased, the aggregate supply is insufficient, or the demand for goods and services exceeds the supply available according to the current **, and therefore the general price level**. Aggregate demand includes consumption demand, investment demand, ** expenditure, and net exports.

Supply-driven. Analyze the causes of prices** from the perspective of aggregate supply. Supply is production, and according to the production function, production depends on cost.

Therefore, from the perspective of aggregate supply, the cause of prices** is the increase in costs. The increase in costs means that the same level of output can be reached only when it is higher than the previous level, that is, the aggregate supply curve moves to the upper left and reduces the national income, and the level rises, and this increase is the cost-driven price.

Driven by a mix of supply and demand.

Combine aggregate demand with aggregate supply to analyze the causes of prices**. The root cause of prices** is not a single aggregate demand or aggregate supply, but the result of a combination of both. If the price ** is started by the demand pull field, that is, the existence of excessive demand causes the price to rise, this price rise will cause the wage to increase, and thus the increase in the cost of supply will cause the price ** driven by several books.

If the price ** is started by the cost push, that is, the increase in cost causes the price to rise, then if there is no corresponding increase in aggregate demand, the rise in wages will eventually reduce production and increase unemployment, so that the price ** caused by the cost push will stop. This price will only persist if there is an increase in aggregate demand at the same time as the cost push.