Why is the renminbi appreciating and inflation rising?

The RMB is expected to appreciate, which leads to an increase in transactions selling US dollars in the international financial market, which is equivalent to an increase in the amount of RMB, and it is obvious that the amount of money has increased, that is, the money is worthless, so that prices will rise, that is, inflation will intensify.

Can an appreciating renminbi solve inflation?

2008-02-24 benzhuzhu has recently appreciated very much, rising by 5 in about 4 months

A lot of people jump out and say that this is the solution to inflation.

I don't think so, though.

Generally speaking, inflation means that too much money is issued.

So there is a need to raise interest rates, reserve requirement ratios, and issue bonds to recoup money, but this time the price surge is not entirely an over-issuance of money.

Food accounts for a large proportion of China's CPI.

Stocks of agricultural products have been declining for many years.

It's in history now.

It's a real reduction.

According to the principle of supply and demand, no matter how the currency is recovered, it is something that will increase in price, and everyone will naturally grab it.

Then we will raise the exchange rate and go abroad to buy.

It's too late for that.

Recently, wheat has risen to a record high in the world, and the cumulative amount of iron ore in the past month and a half is 65

The price of oil rose from $70 to $100, an increase of about 43 by the smallest.

Can we make the renminbi appreciate43 to fight inflation?

The appreciation of the renminbi can slow inflation to a certain extent.

However, the corresponding depreciation of huge foreign exchange reserves and the smooth profit outflow of hot money5 The appreciation is already a huge pressure on us, not counting hot money, more than 500 billion yuan has been taken by the United States for nothing.

The renminbi exchange rate is indeed undervalued.

But these are extraordinary times, and countries that cannot solve the problem by the appreciation of the renminbi must use administrative coercion to slow down inflation.

Due to the high international oil prices.

Fertilizers, pesticides and other agricultural products are constantly along.

The state should continue to adjust tariffs in this regard.

The ** of basic food is guaranteed.

If everything else goes up, go up.

The maximum number of consumption points.

Things can rise quickly in place, so that they can hurry up.

Help the economy cool.

The United States has refused to release its strategic oil reserves to help bring inflation down.

That can only be expected to cool down the economy, resource consumption will naturally come down, and the quality will rise very sharply.

The renminbi has appreciated a little compared to the U.S. dollar.

This is mainly due to the depreciation of the dollar.

The world's major currencies have appreciated more against the US dollar than the renminbi!

From this point of view, the renminbi is depreciated.

In addition, there is a strong expectation of appreciation of the RMB, which leads to a large number of foreign currency inbounds! Causing prices to rise.

In addition, the interest rate of the renminbi is now higher than that of the dollar, and this interest rate differential has also led to many people holding renminbi.

In addition, everyone is desperate to make money, but a lot of things are exported, there is more money, but there are many items exported, so it can be said that the supply and demand of this currency have been unbalanced.

The current interest rate hike by the central bank is just a stupid way to treat the symptoms!

The only way is to increase appreciation and reduce appreciation expectations, so as to increase international procurement and make inflation thinner globally! Make a lot of hot money flow out!

Do you have any tapes? It's a bit old, haha 07

Inflation depreciates the renminbi, and deflationary renminbi is promoted.

Inflation causes currency depreciation due to the excessive amount of money put into circulation, mainly paper money, which greatly exceeds the amount actually needed for circulation.

Deflation, as the opposite phenomenon of inflation, should reflect the trend of price changes, and the overall and continuous decline of ** indicates that the value of commodities reflected in the unit of money is increasing, which is the result of the relative shortage of money supply, and the insufficient money supply may only be one of the reasons for deflation. Extended Resources:

The impact of inflation on residents' income and household consumption:

1) The level of real income has fallen.

2) The income effect and substitution effect of **** lead to a decrease in welfare.

3) The income distribution effect of inflation: the specific manifestations are: low-income people (those with less endowments) have their welfare suffered, while high-income people (those with more endowments) can benefit; Those who earn from wages, rent, and interest will suffer from inflation; Those who rely on profit as their main income may make a profit.

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.

Theoretically, the appreciation of RMB is not necessarily related to inflation, and your question is also a loose question, your question is actually as follows: RMB appreciates externally but inflation internally!

Yes, at present, the external appreciation and internal depreciation of the renminbi are synchronized! That's right!

1. RMB appreciation is expected, profit-seeking capital will flow into China, according to the current monetary policy, before entering 1 US dollar, the People's Bank of China will start the machine to print out RMB to hedge, a large amount of US dollars will enter the country, there will be a large amount of RMB liquidity, RMB can not inflation and depreciation!

2. The appreciation of the renminbi, the setback of exports, the sharp decline in the surplus and even the deficit, this is the United States playing China. Who does China play? You can only be a player slave!

The United States exploits the world, and China is naturally the big one, who will China exploit to hedge its losses, or a domestic slave! RMB inflation, the wealth of all people who hold RMB will shrink, and wealth will naturally be quietly transferred!

3. What is the US dollar, hard currency, international currency, and it is all money when it comes to **! What is the renminbi, a closed national currency that is not circulated to the outside world, which can only be used at home, and in the international arena it is waste paper, and nothing can be bought! As long as you have dollars in your hand, it doesn't matter if you are RMB inflation or not!

4. Why is a certain country's first reserve and a big man in the world! Because he earns dollars with ink and paper, and his blood and sweat are shed by uncivilized house slaves!

3. Distinguish the essence of things and recognize your own role positioning, and all confusion will be naturally clear!

If you are really rich, it is recommended to exchange RMB for USD! Depreciation cannot be avoided completely, but partial stop loss can be obtained. Hehe.