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"Tight money on the market" refers to only the tightness of the entity, and due to the convenience of the circulation of bills of exchange, the liquidity of the local market is actually excessive, in this period (should be in the short term), the speed of goods can not keep up, and businessmen can not return empty-handed, and the goods will rise.

It should be caused by factors such as the lack of development of logistics, limited transportation conditions, slow information transmission speed, and the market's inability to adapt to new circulation methods in the short term.

At that time, almost all the bills of exchange that were circulating in the hands of these northern merchants were issued by a firm called Rishengchang in Shanxi."

It shows that this firm is out of control of printing bills of exchange! As a result, the growth rate of bills of exchange exceeds the growth rate of goods.

1.If a country's inflation is too large, the state will increase the interest on deposits and withdraw funds. This is how the market circulates. 1. Inflation is whether there is more or less money in circulation in the current market. After the rate hike, more money.

It's the equivalent of sniping at the local financial market, and now you take tens of billions of dollars in Brunei, which can also cause prices to skyrocket.

Bills of exchange are much more convenient than **, circulate quickly, and the transaction volume will be ** in the short term, so the road will be newly built, and the car will go fast, and the traffic volume will increase, but in the long run, it will slowly stabilize, and the impact on the economy will not continue.

Inflation refers to the monetary phenomenon of currency depreciation and price due to excessive currency.

Understand: Inflation is a phenomenon unique to the circulation of paper money, but the circulation of paper money does not necessarily produce inflation.

The essence of inflation is the value of the currency**, which is externally expressed in prices**.

Currency depreciation in inflation is linked to the persistence of the general level of prices.

There are two types of prices** in inflation: overt and covert.

Due to the sharp increase in the cost of raw materials and labor, a large number of enterprises have incurred losses and serious closures, resulting in a decrease in the supply of necessities in the market, and the currency circulating in the market is relatively abundant, that is, the supply is less than demand, which will cause inflation.

There is a surplus of products or too few products. Money is worthless. In its place, the economy expanded, and then there was an economic crisis.

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