How to better solve the problem of domestic inflation?

There is no need for the people to say anything about this problem! To be able to do something, and already doing it, take a look at the news from the top.

Control the amount of currency**. Since the direct cause of inflation is too much money, one of the most basic countermeasures to control inflation is to control the amount of money, adapt it to the demand for money, and stabilize the value of the currency to stabilize prices. In order to control the amount of money, it is necessary to implement a moderately tight monetary policy, control the supply of money, maintain a moderate scale of credit, and use various monetary policy tools to flexibly and effectively regulate the total amount of money and credit, and control the amount of money at a level that is compatible with the objective demand.

Regulate and control aggregate social demand. It is not enough to control inflation only by controlling the amount of money, but it is also necessary to prescribe the right medicine according to the deep-seated causes of each inflation. For demand-pulling inflation, the key is to regulate and control aggregate social demand.

The regulation and control of aggregate social demand in various countries is mainly achieved through the formulation and implementation of correct fiscal and monetary policies. In terms of fiscal policy, the main thing is to vigorously reduce fiscal expenditures, strive to increase fiscal revenues, persist in balancing revenue and expenditure, and refrain from running deficit finances. In terms of monetary policy, measures to tighten credit, control money supply, and reduce the total amount of money are mainly adopted.

There are two very important ways to adopt fiscal and monetary policies to coordinate and comprehensively deal with inflation: to control the scale of investment in fixed assets and to control the excessively rapid growth of consumption, so as to achieve the goal of controlling aggregate social demand.

Increase the effective supply of commodities and adjust the economic structure. Inflation must be tackled on two fronts at the same time: on the one hand, aggregate demand must be controlled; On the other hand, increase the aggregate supply.

The two should not be neglected. Blindly controlling aggregate demand without focusing on increasing aggregate supply will affect economic growth, and equilibrium can only be achieved at a low level, and the previous achievements may be undone because the cost of controlling inflation will be increased. Therefore, while controlling demand, it is also necessary to increase the effective supply of goods.

Generally speaking, the main means of increasing effective supply are to reduce costs, reduce consumption, improve economic efficiency, increase the proportion of output that is invested in people, and at the same time, adjust the industrial and product structure to support the production of commodities in short supply.

Other policies to cure inflation. In addition to controlling demand, increasing supply, and adjusting the structure, there are also some other policies to control inflation, such as price limits, tax cuts, and indexation.

In the face of inflation, we should establish a correct concept of wealth management and realize the appreciation of wealth and assets as much as possible, so as to cope with the impact of inflationary asset depreciation. How to maintain and increase the value of assets also needs to be chosen according to their own actual conditions.

How does inflation come about? And how should we deal with it?

That's a question you shouldn't ask. Inflation can never be the first in any country, any market economy is inevitable. What can be adopted now are policies and methods that treat the symptoms rather than the root causes.

1. Control the amount of currency.

Since inflation is a monetary phenomenon under the conditions of paper money circulation, the most direct cause is the excessive amount of money in circulation, so an important countermeasure taken by various countries in controlling inflation is to control the amount of money, so that it can adapt to the demand for money, and reduce the pressure of currency depreciation and inflation.

2. Regulate and control the aggregate demand of society.

Regulating and controlling aggregate social demand is the key to demand-pulling inflation. This is mainly achieved through the implementation of the right fiscal and monetary policies. In terms of fiscal policy, this is achieved by tightening fiscal expenditures, increasing tax revenues, seeking budget balance, and reducing fiscal deficits.

In terms of monetary policy, the main thing is to tighten credit, control the supply of money, and reduce the amount of money. If fiscal policy and monetary policy want to cooperate with the comprehensive management of inflation, an important way is to control the total social demand by controlling the scale of fixed asset investment and controlling the excessive growth of consumption.

From a macro point of view, there is nothing we ordinary people can do to curb inflation, mainly relying on the best to regulate and control, and introduce relevant economic policies and measures, but from a micro point of view, the people themselves can also take some measures to deal with inflation. First of all, of course, work hard, earn more money, and spend less to reduce inflationary pressures; Secondly, the erosion of property by inflation can be offset through various investment and financial management means. The following is the macro control:

Control the amount of currency**.

Regulate and control aggregate social demand.

Increase the effective supply of commodities and adjust the economic structure.

Other policies to cure inflation.

Inflation is a very complex economic phenomenon, and its causes are manifold, and we need to adopt different countermeasures according to the causes, and prescribe the right medicine. This kind of prescription is not simply a one-to-one correspondence based on the analysis of the cause, nor can it be a mechanical and rigid copy of other people's or one's own past experience. Moreover, the right medicine should also be based on a certain program or priority, and at the same time combined with other treatment programs.

In other words, controlling inflation is a systematic project, and all control plans can cooperate with each other to achieve the desired results.

It is necessary to analyze the root causes of inflation. Taking the current situation in China as an example, I personally believe that related to the long-term loose monetary policy, China has long pursued Keynesianism, and continued to increase the money supply in the state of equilibrium in the real economy, which will inevitably lead to widespread inflation and inflation. Therefore, a tight monetary policy should be adopted.

Inflation refers to the phenomenon of continuous and widespread price depreciation for a period of time caused by the fact that the supply of money is greater than the actual demand for money, that is, the actual purchasing power is greater than the supply of output, which leads to the depreciation of the currency. Its essence is that the aggregate demand of society is greater than the aggregate supply of society (supply is much less than demand).

1. Reduce money** 2. Increase supply.

We should use the means of combining monetary policy and fiscal policy to carry out macroeconomic regulation and control.

In times of severe inflation, the state should pursue a tight monetary policy and a tight fiscal policy. Raise interest rates and reduce the level of aggregate demand, while preventing excessive interest rate increases. For example, increasing taxes and reducing spending (fiscal policy).

Raise interest rates and reduce the money supply (monetary policy).