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It's actually quite simple:
1. Inflation is inflation because too much currency is issued and the currency depreciates.
2 The renminbi is indeed currently inflationary, because a large amount of currency has been issued in the past to deal with the financial crisis.
3. The appreciation of the renminbi is aimed at the dollar, because the dollar has depreciated more sharply, so although the renminbi has depreciated, it is still stronger than the dollar.
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To put it mildly, it may not be comprehensive.
I don't think inflation has much to do with the appreciation of the renminbi at the moment. Rapid economic growth inevitably leads to inflation. But for now, I think inflation is due to the general level of inflation due to the fact that a few interest groups have artificially raised ** in order to seek greater profits.
In particular, some behaviors of enterprises with national interests with market power can easily lead to price **. It is an internal reason. The appreciation of the renminbi is mainly due to external pressure.
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Let's take a simple example, we need one dollar to buy a pound of rice, but at this time there is inflation, and people have more money in their hands, so it takes two yuan to buy a pound of rice, so this is the simplest inflation。It is easier to understand through inflation, that is, a currency circulating in the market, which can be said to be the RMB, so the expansion means that the currency is overissued, and this currency is more in the market. However, there is a key point that must be paid attention to here, that is, the goods on the market have not increased because of this, for example, one dollar and one pound of rice, originally there were 10 yuan in this market, and 10 pounds of rice is just right, and there will be no inflation.
But if there is suddenly an extra 20 yuan in this market, or even an extra 10 yuan, then the total amount of funds in this market will reach 20 yuan or even 30 yuan, but the amount of rice has not increased, and it is still only 10 catties, so in this case, people need to buy rice, they need to spend 50% more, and it has become two yuan a catty, which is actually inflation.
Inflation is a huge disservice to ordinary people and some of the poor, as well as to wage earners。Because the working class, ordinary people and some poor people need to increase their income through work, but after inflation, some rich people or some rich people will not take the initiative to increase the wages of some workers, so to this extent, it is necessary to curb some inflation.
An algorithm of inflation can actually be calculated in our daily expenses, such as our usual food, clothing, housing and transportation. It will cost about 2,000 yuan, but after a month, we will need to spend 2,400 yuan, so in this case, we can calculate the inflation rate, which has reached 20%. If the income does not increase at this time, then this inflation will still be very harmful to ordinary people.
If you want to avoid inflation, you have to work the one hand, and on the other hand, you have to do some financial management and investment to increase your income, which is the best way.
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Inflation means that there are fewer things that you can buy with your own money, and indirectly your purchasing power decreases.
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In other words, you used to be able to buy a bowl of noodles for one dollar, but now you may only be able to buy a bowl of noodles for five yuan, and it is not even more than the previous bowl of noodles.
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In fact, what I sold was not sold. It's all piled up on its own. That's the legendary inflation.
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In fact, you can't sell the goods. These goods did not get a profit. You're losing money in this business.
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Clause. First, the most popular understanding is that pork has risen from 5 yuan a catty, to 8 yuan a catty, to 15 yuan a catty, and now to 30 yuan a catty. Originally, 100 yuan could buy 20 catties of pork, but now you can only buy 3 catties, which is the most popular understanding of inflation, simply put, money is worthless.
Clause. Second, the impact of inflation on the general public, especially the people at the bottom, is still very great, or take pork as an example. No matter how much pork rises to a pound, rich people will still eat meat, pork, and beef every day.
But ordinary people can't eat meat so willfully, they used to eat meat once a week, but now they can only eat meat once a month or a month.
Last time I went home on National Day, I went to visit my grandfather and weighed two catties of meat, and my grandfather said, now pork is so expensive, what do you weigh meat, you don't have much money. This can illustrate the impact of prices** on ordinary people.
Clause. 3. I don't know if you have found it, as long as the basic price **, such as pork, all the dishes in the hotel and restaurant are **. The price of food in restaurants will not drop a little like pork, and the price of dishes in hotels and restaurants will continue to rise as long as it rises, and there will be no further price reduction.
Therefore, it is best to control inflation reasonably, after all, it is always ordinary people who are affected, and the people at the bottom will not be able to afford it, and they will not be able to afford it.
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Inflation refers to the comprehensive and continuous depreciation of currency and the price level caused by the amount of money in circulation exceeding the actual needs of the economy under the credit money system. In more layman's terms, the price level in a given economy generally continues to grow over a given period of time, resulting in a sustained decline in the purchasing power of money.
In Keynesian economics, it arises because changes in aggregate supply and demand in an economy lead to a shift in the price level. In monetarist economics, the reason for this is: when the amount of money in circulation in the market increases, the people's monetary income increases, and the purchasing power decreases, which affects the price of goods and causes inflation.
Unlike currency depreciation, overall inflation is a decrease in the value of money in a given economy, while currency depreciation is a decrease in the relative value of money between economies. The former affects the value of the currency in the country in which it is used, while the latter affects the value of the currency in the international market.
Inflation is manifested in the comprehensive and continuous depreciation of the currency and the price level caused by the amount of money in circulation exceeding the actual needs of the economy under the credit money system.
There are generally three types of indices that measure the inflation rate: the consumption index, the producer index, and the GDP conversion index.
The most fundamental measure to control inflation is to develop production and increase effective supply, and at the same time, it is necessary to adopt measures such as controlling the amount of money, implementing a moderately tight monetary policy, and a fiscal policy of keeping the amount of money within the limits of income. To control deflation, it is necessary to readjust and optimize the industrial structure, comprehensively use investment, consumption, export, and other measures to stimulate economic growth, implement a positive fiscal policy, a prudent monetary policy, and a correct consumption policy, and adhere to the principle of expanding domestic demand.
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Inflation is actually more money in reality. There are more banknotes, and everyone has the desire to spend. However, in fact, there is no increase in goods, but there is a large desire to consume, the supply exceeds the demand, and the nominal value and the real value of the currency deviate, that is, the value of 1 dollar after inflation is less than the value of the non-inflation (money is worthless).
This is inflation, and inflation is a monetary phenomenon.
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It is an economic phenomenon caused by the imbalance between supply and demand, when the supply is less than the demand, the commodity ****, the merchant increases production, resulting in the price of goods, the depreciation of paper money.
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It is the phenomenon of continuous price **.
Inflation is when prices rise and money is worthless; For example, in the past, 1 yuan bought an egg, and it became a yuan first, which is 10% of the eggs, and the price index is the ** index of the main commodities in the whole society. Bonds and bank savings are both fixed interest rates, that is, the annual interest income is fixed, for example, 3%, that is, if you save 1 yuan in bank savings or buy 1 yuan in bonds, you can get 3 points of interest; But the price is **, an egg is more expensive, and your 3 points of interest income is not worth the price **, which means that you have lost and your money has depreciated, that is, the current money can no longer buy so many things, goods and services as before, and you only have yuan to buy ** yuan of eggs. Therefore, the income from your investment must exceed inflation, that is, the range of prices** to be cost-effective. >>>More
Inflation is relatively straightforward and simple, that is, the price of goods is too high and the currency is depreciated. >>>More
Solution: At present, the main problem of inflation is to raise interest rates and reserve ratios and tighten monetary policy. Mainly for the sake of the **policy** of "harmony". >>>More
Inflation creates risks such as currency depreciation, falling prices**, falling savings, costs**, and rising unemployment.
I personally study the following three reasons that have an impact on ****. >>>More