What is the cause of inflation in the global economy? 30

Updated on Financial 2024-05-04
15 answers
  1. Anonymous users2024-02-09

    First, let's look at the reasons from the definition and principle.

    Inflation refers to the general price level of an economy when the growth rate of the quantity of money is greater than the growth rate of the quantity of goods in a period of time, and the purchasing power of the unit of money decreases. Money is the medium in the process of physical exchange, and money represents the value of the physical goods that can be exchanged. Ideally, the growth in the quantity of money (money supply, e.g., central bank printing, currency exchange) should be consistent with the growth of the physical quantity in the physical market, so that prices can stabilize and inflation does not occur.

    Inflation occurs when the quantity of money grows faster than the quantity of physical goods. For example, if the total amount of money is 100 yuan, and the total amount of 10 apples in kind is worth 10 yuan, if the output of apples increases by 10 in the second year, that is, there are 20 apples on the market, and the currency increases by 200, that is, the total amount of currency is 300 yuan, then each apple is worth 15 yuan in the second year, and when it is extended to the entire economy, the price level rises, so there is inflation.

    2. Reasons for external factors: (Many problems left over from the global economic crisis have led to the temporary instability of the global economy. )

    1.The United States issued a large number of dollars in the second half of 2010, which led to a sharp increase in global currency circulation, a sharp depreciation of the dollar, and a worsening of global inflation.

    2.Recently, the war in Libya has also dragged down the world economy. Oil is the lifeblood of Libya's economy, with more than 95% of the country's export earnings coming from oil.

    The outbreak of war in Libya has halted all of Libya's oil production of 1.6 million barrels per day. As an important oil producer in the world, the escalation of turmoil in Libya has led to another surge in international oil prices**. Although Libya currently accounts for less than 2% of world production, its customers are almost European refineries, and more than 80% of its oil is exported to Europe.

    And after two days, the oil price ** is very large because it comes from Libya. And as we all know, oil prices will also drive many prices in other industries further.

    3.Japan's mega** and tsunami (the global economy was greatly affected).

    4.the instability of the situation in the Middle East, etc.

    3. Let's take a look at the causes of inflation: (mainly the butterfly effect).

    a) Demand-driven inflation.

    b) Cost-driven inflation.

    Wage-driven inflation.

    Profit-driven inflation.

    Import costs drive inflation.

    iii) Inflation driven by a mixture of demand and cost.

    iv) Expectations and inflationary inertia.

    Fourth, various industries under inflation:

    **Rising are: flour, land, etc. (mainly industrial).

    **Dropped are: mobile phones, computers, televisions, etc. (Circulation output value).

    **Unchanged commodities are: products that have been in circulation for a sufficiently short period of time.

    If we call the phenomenon of the exchangeable commodities in circulation appreciating in the process of transfer with the change of time and space as expansion, we can also call the phenomenon of the exchangeable commodities in circulation depreciating in the process of transfer with the change of time and space as "shrinkage".

  2. Anonymous users2024-02-08

    As long as it's inflation, it's definitely because too much money is printed, and credit is expanding wildly. If you don't believe me, I can't help it. The explanations for the reasons why all the other messes hurt their brains are.

    If the total value of goods in the world is 1,000 yuan, then printing money and credit to make 5,000 yuan will definitely make the unit of goods ** soar (inflation) in the end

    Enterprises and institutions close to the right are rushing to buy capital goods to expand their industries after getting the new money, and inflation is most obvious in the fluctuation of capital goods. Please observe the global products on your own****.

    The future development of the industry must be new energy, which has great opportunities.

  3. Anonymous users2024-02-07

    There is no global inflation at the moment.

    To put it simply, we have exported and earned a lot of dollars, and we have to print the equivalent amount of RMB.

  4. Anonymous users2024-02-06

    Give a simple and easy-to-understand answer: the dollar has established monetary hegemony in the Bretton Woods system and after the seventies of the 20th century, and the dollar has become the only international currency, but after the subprime mortgage crisis, the United States did not dare to tighten monetary policy, because it was afraid that more companies would fail, and secondly, it wanted to save the market by injecting liquidity into the market, that is, printing more money, and the dollar is an international currency, so the dollar can circulate all over the world and cause global inflation.

  5. Anonymous users2024-02-05

    I think there are many political, macroeconomic, war, exchange rate ,.. for this reasonAnd so on and so forth.

  6. Anonymous users2024-02-04

    What does inflation mean? What are the causes of inflation?

  7. Anonymous users2024-02-03

    China prints 20 percent more tickets than the United States.

  8. Anonymous users2024-02-02

    Inflation originally referred to the depreciation of currency caused by the issuance of paper money in excess of the actual demand in the circulation of goods. The law of paper money circulation shows that the amount of paper money issued cannot exceed the amount of gold and silver currency it symbolically represents, and once it exceeds this amount, the paper money will depreciate and the price of goods will be **, resulting in inflation. Inflation occurs only under the conditions of paper money circulation, and not under the conditions of gold and silver currency circulation.

    Because gold and silver money has value in itself, its function as a means of storage can spontaneously regulate the amount of money in circulation so that it is compatible with the amount of money required for the circulation of commodities. Under the conditions of paper money circulation, because paper money itself has no value, it is only a symbol representing gold and silver currency, and cannot be used as a means of storage, so if the amount of paper money issued exceeds the amount required for commodity circulation, it will depreciate. For example, the amount of gold and silver money required in the circulation of commodities remains unchanged, and the amount of paper money issued exceeds twice the amount of gold and silver money, and the unit of paper money can only represent the value of the unit of gold and silver money 1 2, in this case, if the price is measured by paper money, the price will be doubled, which is commonly known as currency depreciation.

    At this time, the amount of paper money in circulation doubles the amount of gold and silver money needed in circulation, which is inflation. In macroeconomics, inflation mainly refers to the general rate of wages and wages.

  9. Anonymous users2024-02-01

    What is inflation and why is there inflation.

  10. Anonymous users2024-01-31

    Inflation on the world economy.

    The impact is more about causing money to depreciate to cause people's labor to depreciate, causing people's wealth to decrease because you originally had a deposit of 1 millionBut if the purchasing power of the 1 million deposit cannot be reduced, then your money will naturally become less and less valuable. <>

    Proper inflation is necessary or inevitable for economic development, because every year according to the inflation rate that we have published.

    The normal inflation rate is 3% 5%, which is very normal, and there is no problem if it does not exceed 5%, but if you talk about the kind of inflation rate that reaches a few hundred percent, or even a few thousand percent, it is hyperinflation.

    A face value of millions, or even tens of millions, why is the amount so large, and he still can't buy anything in the endEven that banknote is not as valuable as toilet paper, because they are so inflationary, it has reached the level of hyperinflation. <>

    Every year we have a proper inflation, this doesn't have to be too kind, but with the development of the economy, inflation is getting faster and faster, which is not a good thing, for example, last year you earned 100,000 yuan a year, and your income is based on the current purchasing power.

    It's not particularly low, it's already a middle-income level, and then when the inflation rate is 5% this year, your 100,000 yuan doesn't have such a small purchasing power, and you lose 5%, which doesn't have a particularly big impact, but if it's 50%, that is, you will still earn 100,000 yuan next yearBut this 100,000 yuan can only have the purchasing power of the original 50,000 yuan, so do you feel that the value of your labor has not been effectively recognized? <>

    The normal economic development of a country will bring about a certain amount of inflation, which is a very normal thing, because we all know that from the beginning of the reform and opening up, or from the end of the 90s of the last century to the present more than 40 yearsThen you should know that the purchasing power of 100 yuan at that time and 100 yuan now is completely different, which belongs to normal inflation.

  11. Anonymous users2024-01-30

    Severe inflation is extremely harmful, and at this time, it will not only have the normal impact on the economy mentioned above, but will bring a huge crisis to the entire economy and society. The most common include flash buying of goods, bank runs, not to mention political instability when the situation continues to deteriorate and national living standards fall to a certain level. After the outbreak of the epidemic, various countries had to suspend production in order to prevent and control the epidemic, which led to a reduction in production capacity, and all goods were in short supply, especially in labor-intensive industries.

    For example, primary processing products, minerals, textiles, etc., the shortage of supply will inevitably bring ****, and the increase in the cost of the upstream of the industrial chain will further lead to the price increase of downstream or terminal products.

  12. Anonymous users2024-01-29

    Inflation puts pressure on the economy. Prices are constantly rising, but people's wages are not well guaranteed, so many people can't afford to eat. The rich are too rich, and the poor are too poor.

    leads to some asymmetry of wealth. The gap between rich and poor is too great. It can also easily lead to a decrease in the economic strength of various countries.

    There is a risk of an economic crisis.

  13. Anonymous users2024-01-28

    The United States printed a large amount of money, increasing the circulation of dollars in the market, which triggered hyperinflation in the market and forced the commodities in the market. There are more U.S. dollars in the market, the natural commodities are higher, the dollar is depreciated, and the U.S. inflation is imposed on other countries in disguise, and in order to prevent the United States from passing on this method, central banks have to raise interest rates.

  14. Anonymous users2024-01-27

    What is the root cause of inflation in the world? What does inflation mean?

    Inflation is actually caused by too much money circulating in the market. To put it simply, according to the supply relationship, the value of the money itself will fall, because the supply of money is agitated and the demand is fierce, so more money is needed to buy the same goods. Everyone's feeling is, ****, things have become more expensive.

    The opposite of inflation is deflation, where the amount of money in circulation is less than the actual demand.

    Inflation refers to the phenomenon that the amount of money is greater than the actual demand for money, that is, the real purchasing power is greater than the amount of output, resulting in currency depreciation and prices continuing to be large-scale for a period of time.

    <> at this time, the ** bank will adopt a tight monetary policy, raise interest rates, and relatively raise deposit rates to allow investors to save money. At the same time, raising the interest rate on loans and raising the cost of loans can reduce the amount of loans, withdraw money, reduce the amount of money in social circulation, and alleviate inflation. What does inflation mean?

    Inflation means that the amount of money in circulation is greater than the actual demand for money.

    It is an important indicator of inflation. To put it simply, according to the supply relationship, the value of the money itself decreases, because the supply of money exceeds the demand, so more money is needed to buy the same goods. Everyone's feeling is, ****, things have become more expensive.

    The opposite of inflation is deflation, where the amount of money in circulation is less than the actual demand. In fact, inflation is a very negative and complex economic phenomenon that is influenced by complex factors that can lead to many outcomes. Push-forward inflation refers to the inflation of goods caused by the increase in production costs and products** due to the increase in factors such as wages, profits, rents and interest, etc., under the condition that aggregate demand remains unchanged.

    In a word, in the case of inflation, investors can mitigate the effects of inflation by investing in some financial management.

  15. Anonymous users2024-01-26

    Inflation refers to the phenomenon of price collapse, that is, when the price is price, the same quantity and quality of goods or services will also be lost. It is caused by an increase in the amount of money, which causes the currency to circulate among the holders, which leads to a weakening of the purchasing power of the currency.

    There are many main causes of inflation, the main ones are the following:

    1.Policy factors: The central bank may adopt a looser monetary policy to increase the amount of money, and the inflow of these currencies into the market will lead to inflation.

    2.Economic growth: Economic growth means an increase in consumption and an increase in demand, which will lead to price increases, which leads to inflation.

    3.Restrictions: Due to restrictions on imports or raw materials, the cost of production for a business rises, which leads to prices, which triggers inflation.

    4.Social factors: The investment and consumption behavior in the society will have an impact on prices, which will make the price **, which will cause inflation.

    5.Exchange rate factors: exchange rate changes will affect the amount of currency in a country, which will affect prices, which will cause inflation.

    6.Fiscal policy: The policy of cultivating the rich will also affect prices, and if the fiscal policy is too loose, it will make the price of goods, thereby causing inflation.

    Inflation has a great impact on socio-economic activities, it affects the economic structure of countries, and thus the social structure, affects consumer behavior, and the dynamics of socio-economic development. Therefore, the central bank should take effective measures to reduce the impact of inflation in order to promote the healthy development of the economy.

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