Is a recession necessary to reduce inflation?

Of course not. First of all, there are many types of inflation, and only inflation that exceeds a certain range will lead to a recession.

Second, it is widely believed (forget that it was the economic god who said it) that moderate inflation can boost economic growth. Because, under moderate inflation, the nominal wages of workers remain the same, while real wages fall, so the cost of manufacturers falls, so more workers are employed, and thus employment increases and output increases.

Also, from the short-term Phillips curve, we know inflation and unemployment.

In the opposite direction, in order to reduce employment, there is often a certain inflationary pressure (controllable inflation, of course.

Finally, in practice, looking at the United States, in order to reduce unemployment, the incumbent ** often proposed the implementation of quantitative easing monetary policy, the essence of which is to also inflation in exchange for employment, so as to attract votes.

A recession is deflation. Deflation, also known as ignition deflation, refers to when the currency circulating in the market decreases, the people's monetary income decreases, and the purchasing power decreases, which affects the price of goods and causes deflation. Prolonged monetary tightening will dampen investment and production, leading to higher unemployment and a recession.

is the opposite of inflation. However, deflation is more damaging to the economy and people's livelihood than inflation.

There are two types of inflation: benign and vicious.

Benign moderate inflation is accompanied by the economic development of Changyu. Resistant to tung rolling.

Hyperinflation, also known as an economic bubble, is the precursor to a recession.

Money production sliding towards a privileged order].

Today's free economy is riddled with a fiat, non-cashable monetary system in which central banks monopolize money production. Before questioning the negative impact of the market economy on morality, we need to examine the extent to which the free market has borne the monopoly of money production.

First, the central bank's monopoly on money production is a product of the infringement of private property rights. The encroachment of money production on the right to private property is achieved through the "expansion of the nominal quantity of money". Prior to the advent of banking, this expansion was mainly achieved by reducing the fineness of the coinage.

If color reduction is illegal, then this adulteration fraud is always on the edge, and traders can also drive away bad coins by checking the fineness. However, when ** monopolizes the coinage, subtraction is no longer regarded as adulteration fraud, because it is legal. Next, you will mark the coin that is actually only half an ounce with "one ounce" and put the other half an ounce in your pocket.

After the advent of the banking industry, most of the banks at first issued bank bills based on full reserves, and later banks gradually transitioned to banks that issued excess bank bills based on partial reserves. If overissuance is illegal, then this counterfeiting fraud is always on the edge, and the holder can also drive away the bad currency through a run. However, when a bank bill issued by a partially prepared bank is given the status of a legal monopoly currency, it is authorized to suspend the payment, that is, to eliminate the risk of a run by refusing to cash the bank bills agreed in the contract, and the bank notes are converted into non-cashable money, and the central bank becomes a monopoly money producer.

3] Second, inflation violates the three basic ethics mentioned above. Inflation can be defined as "the phenomenon of a nominal quantitative expansion of any medium of exchange in excess of its output in the free market". The minting of coinage and the over-issuance of bank bills are inflationary.

As mentioned earlier, in the free market, this underground inflation is marginalized and constantly eliminated. Inflation initiated by monopolizing money production is not easy to control. Inflation proponents have a saying:

Economic growth is only possible if it is accompanied by a corresponding monetary** growth. This statement conceals an economic common sense: as long as we continue to choose more efficient production methods, our costs will always show a downward trend.

Even if it is not as good as Moore's Law, the innovation effect will always allow our customers to enjoy products and services that are cheaper, or the same as higher quality products and services. It can be seen that the growth of money preserves industries with rising costs, i.e., industries that support the inefficiency of the mode of production (the ethical issue of responsibility) or support the continued exploitation of increasingly scarce natural resources (the ethical issue of plunder), and all this comes at the cost of continuous infringement of private property rights (ethical issues of freedom).

See. The Ethics of Money Production", revealing the truth about inflation, sorting out the ins and outs of money production, and torturing the current monetary system.

Inflation is only a part of the process of the economic cycle or the manifestation of the obstacle, and cannot be simply defined as "inevitable" or "recession". If it is "imported inflation", then it is not easy to talk about the source after reducing or replacing the import of Jane Liquid, it is not "inevitable", and there are more accidental factors. And inflation, if properly managed, does not necessarily lead to a recession.

Answer]: The economic cycle is generally composed of four stages: recovery, prosperity, decline and recession, and depression. Corresponding to different stages of economic operation, the degree of inflation is usually divided into four stages: the early stage of inflation, the period of high inflation, the early stage of deflation, and the period of low deflation.