Digital currency can avoid inflation

1. 1. Its quantity is too small compared with the currency in circulation; 2. Digital currency is generally not used to buy goods. So digital money will not inflate.

2. No, it can be said that 100% is a fraud. In fact, even bitcoin countries are not allowed to trade at present. It's better to speculate in stocks than to have that money

3. Methods to avoid inflation
in the face of inflation, the residents' direct response is to maintain a normal mentality. We should know that inflation is not controlled by us, and we can take some auxiliary measures, such as increasing investment and consumption, Recing savings
increasing investment is to obtain a rate of return higher than the inflation rate by obtaining investment income. This offsets the impact of inflation. Suppose the current inflation rate is 5%. If you choose to invest in stocks, the expected rate of return is 8%. The rate of return is 3% after considering inflation
increasing consumption eliminates the risk of inflation by turning currency into cash. Also assume that the current inflation rate is 5%. The goods or services you can buy for 100 yuan today will cost 105 yuan tomorrow. This is equivalent to the preservation of the value of the goods or services you buy. The best variety to keep value is gold (Note: not jewelry gold, not paper gold)
recing savings is to prevent the currency from suffering the risk of inflation e to idleness.

4. Inflation and deflation can not be avoided. Why do we say that in terms of the balance between money supply and demand. The root cause of inflation and deflation lies in too much and too little money supply. If the money supply exceeds the actual demand, there will be inflation, that is, currency devaluation. On the contrary, if the money supply is too small, there will be deflation and currency appreciation. Under the condition of market economy, all resources are allocated through the market. The money needed for actual circulation and the money issued can never be equal, that is, the balance between money market and proct market can not be realized in real life. This kind of phenomenon exists at any time. The reason why there is inflation at this stage is that it is very obvious at this stage. We can detect that prices are rising, and the rising rate is not small. Inflation can be divided into many types, such as moderate type, galloping type and so on. If you need more information, please refer to Western Economics (Macroeconomics).

5. 1. Control the money supply
as inflation is a monetary phenomenon under the condition of paper money circulation, the most direct reason is that there is too much money in circulation. Therefore, an important countermeasure adopted by various countries in the control of inflation is to control the money supply, make it adapt to the money demand, and rece the pressure of currency devaluation and inflation
2. Adjust and control the total social demand
for demand driven inflation, adjusting and controlling social aggregate demand is the key. This is mainly achieved through the implementation of correct fiscal and monetary policies. In terms of fiscal policy, it is achieved by tightening fiscal expenditure, increasing taxes, seeking budget balance and recing fiscal deficit
in terms of monetary policy, it is mainly to tighten credit, control money supply and rece money supply. If fiscal policy and monetary policy want to cooperate with the comprehensive control of inflation, the important way is to control the total social demand by controlling the scale of fixed asset investment and the excessive growth of consumption funds
extended data
expectation and inertia
in practice, once inflation is formed, it will last for a period of time. This phenomenon is called inflation inertia. One explanation for inflation inertia is that people will make corresponding expectations for inflation
expectation is a kind of estimation of future economic variables, which is often based on past inflation experience and judgment of future economic situation to make judgment and estimation of future inflation trend, thus forming the expectation of inflation
expectation has an important impact on people's economic behavior, and people's expectation of inflation will lead to inflation inertia
source: Internet inflation

6. Because the economy is always developing, there are loans, bonds and so on
if there is development, there will be inflation
if the economy is in recession, it may lead to deflation.

7. How to resist the inflation brought by the devaluation of RMB? Some people say: to be able to use economic leverage, buying a house is the most simple and effective way. You only need to pay a down payment, and the rest can be easily done with bank loans.
this is a view that many people agree with, Nearly 30% of the respondents preferred to buy a house in the way of investment, and so did Lang Xianping, a well-known economist. Under the background of inflation, investing in a house is better than buying gold. Li Jiacheng, a legendary investor in the investment instry, also said at a press conference that throughout the property market in the past few decades, even when buying at the highest price, it is still cheap at present, Is it so easy to invest in a house
now that the real estate policy has changed, the real estate market has changed, and the corresponding investment environment has also changed, many people are worried: will it be a high-end market? Now blindly follow the trend of real estate investment in the end can not be reliable? In addition, looking at the current property market, the total price is often more than 10 million or even more than 100 million. For the general public, even if they want to buy a house to resist inflation, they are still powerless in the face of the down payment of several million

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