Can digital currency prevent inflation
Publish: 2021-03-21 23:40:50
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. The popularity of credit currency is an impact on the low level of currency issuance of the central bank, so the central bank will not sit idly by the large-scale development of Q currency. Naturally, the best way to deal with it is to determine the rights and obligations of game companies through legislation, increase their supervision, and ensure the monetary development rights of the central bank.
3. Bitcoin is not a currency, it's just a commodity. If the issue of paper money can follow the economy, there will certainly not be much inflation, but the key is that it can not.
4. The theory that RMB appreciation can curb inflation is sometimes difficult to be confirmed in practice
it is learned from textbooks that RMB appreciation can effectively curb inflation, mainly because of the deflationary effect of RMB appreciation. Generally speaking, the appreciation of RMB can lead to the decrease of import commodity price (especially the decrease of international raw material price) and the decrease of domestic price level; At the same time, the price of domestic procts is higher than that of foreign similar procts, which leads to the decline of export. The rection of domestic export demand can lead to the decline of domestic price level; The increase of imports, the decrease of exports and the decrease of trade surplus can also relieve the pressure of foreign exchange. As mentioned in the book, RMB appreciation plays a very important role in easing domestic inflation pressure
but the reality is that domestic and foreign procts are difficult to completely replace each other. The effect of RMB appreciation will not rece the pressure of domestic inflation, but will boost the price rise, Because there are two preconditions to solve domestic inflation through RMB appreciation: first, imported procts must have a strong substitution effect with domestic procts with relatively large price increase; Second, the price rection of imported procts brought about by the appreciation must be greater than that of domestic similar procts. In commodity import trade, there are monopoly of resource goods import (such as Sinopec and PetroChina) and tax control of consumer goods, which will increase the price of imported goods in disguised form, and may not make the domestic price level drop much even if the appreciation. On the contrary, the expectation of continuous appreciation of RMB will ince a large inflow of international capital, increase the foreign exchange, and lead to a large amount of base money, which will increase the pressure of price rise. Take Friedman's classic saying: inflation is a monetary phenomenon in any case
therefore, the theory that RMB appreciation can curb inflation is sometimes difficult to be confirmed in practice. China's cheap labor costs make the price of manufactured goods low, and there is a strong demand in the international market (foreigners also love to be cheap). Unless we increase imports, the trade surplus will be difficult to effectively narrow. In addition, the proction plans of many enterprises are formulated in advance, which is difficult to change in the short term, and the export mode is rigid, which will not be adjusted in time e to the change of exchange rate, so the impact on the decline of export is not significant
from July 2005 to the end of 2010, RMB has appreciated by 25% against the US dollar and 14% against the euro. In the past six years or so, the trend of RMB's "devaluation inside and appreciation outside" has further intensified, and we still feel the pressure of two obvious price rises. The appreciation of RMB has not only failed to "depress" the domestic inflation, but also stimulated a large inflow of international capital e to the increase of appreciation expectation, which has led to the increase of foreign exchange and the release of base currency, On the contrary, it increases the pressure of price rise. Although the benefits of RMB appreciation to ease the pressure of imported inflation are largely offset by the tax collection of some state-owned enterprises with import rights and consumer goods
according to experts, a sharp appreciation of RMB by 10% will not relieve the pressure of domestic inflation, but also erode the profits of some small and medium-sized processing trade enterprises that rely heavily on exports, because in the field of foreign trade, more than 50% of the processing trade enterprises have very low profits, and their transactions are mostly settled in US dollars, The sharp appreciation of RMB may have an impact on the affordability of enterprises and the employment of employees
in terms of optimizing the instrial structure, it is necessary for RMB to appreciate moderately, but the exchange rate should not rise too fast, but fluctuate in two directions, rising and falling, which can rece the speed of international capital flowing into China e to the expectation of appreciation, and relieve the pressure of domestic inflation to a certain extent. As president Zhou Xiaochuan said: the exchange rate is not the main tool to manage inflation. To solve the domestic inflation pressure, we must base on the comprehensive use of fiscal policy and monetary policy, and use interest rate, deposit reserve ratio, open market operation and other monetary policy tools to control prices. We should keep the RMB exchange rate at a reasonable and balanced level. We must not abandon the end by end in order to curb inflation and disrupt the direction and steps of exchange rate reform.
it is learned from textbooks that RMB appreciation can effectively curb inflation, mainly because of the deflationary effect of RMB appreciation. Generally speaking, the appreciation of RMB can lead to the decrease of import commodity price (especially the decrease of international raw material price) and the decrease of domestic price level; At the same time, the price of domestic procts is higher than that of foreign similar procts, which leads to the decline of export. The rection of domestic export demand can lead to the decline of domestic price level; The increase of imports, the decrease of exports and the decrease of trade surplus can also relieve the pressure of foreign exchange. As mentioned in the book, RMB appreciation plays a very important role in easing domestic inflation pressure
but the reality is that domestic and foreign procts are difficult to completely replace each other. The effect of RMB appreciation will not rece the pressure of domestic inflation, but will boost the price rise, Because there are two preconditions to solve domestic inflation through RMB appreciation: first, imported procts must have a strong substitution effect with domestic procts with relatively large price increase; Second, the price rection of imported procts brought about by the appreciation must be greater than that of domestic similar procts. In commodity import trade, there are monopoly of resource goods import (such as Sinopec and PetroChina) and tax control of consumer goods, which will increase the price of imported goods in disguised form, and may not make the domestic price level drop much even if the appreciation. On the contrary, the expectation of continuous appreciation of RMB will ince a large inflow of international capital, increase the foreign exchange, and lead to a large amount of base money, which will increase the pressure of price rise. Take Friedman's classic saying: inflation is a monetary phenomenon in any case
therefore, the theory that RMB appreciation can curb inflation is sometimes difficult to be confirmed in practice. China's cheap labor costs make the price of manufactured goods low, and there is a strong demand in the international market (foreigners also love to be cheap). Unless we increase imports, the trade surplus will be difficult to effectively narrow. In addition, the proction plans of many enterprises are formulated in advance, which is difficult to change in the short term, and the export mode is rigid, which will not be adjusted in time e to the change of exchange rate, so the impact on the decline of export is not significant
from July 2005 to the end of 2010, RMB has appreciated by 25% against the US dollar and 14% against the euro. In the past six years or so, the trend of RMB's "devaluation inside and appreciation outside" has further intensified, and we still feel the pressure of two obvious price rises. The appreciation of RMB has not only failed to "depress" the domestic inflation, but also stimulated a large inflow of international capital e to the increase of appreciation expectation, which has led to the increase of foreign exchange and the release of base currency, On the contrary, it increases the pressure of price rise. Although the benefits of RMB appreciation to ease the pressure of imported inflation are largely offset by the tax collection of some state-owned enterprises with import rights and consumer goods
according to experts, a sharp appreciation of RMB by 10% will not relieve the pressure of domestic inflation, but also erode the profits of some small and medium-sized processing trade enterprises that rely heavily on exports, because in the field of foreign trade, more than 50% of the processing trade enterprises have very low profits, and their transactions are mostly settled in US dollars, The sharp appreciation of RMB may have an impact on the affordability of enterprises and the employment of employees
in terms of optimizing the instrial structure, it is necessary for RMB to appreciate moderately, but the exchange rate should not rise too fast, but fluctuate in two directions, rising and falling, which can rece the speed of international capital flowing into China e to the expectation of appreciation, and relieve the pressure of domestic inflation to a certain extent. As president Zhou Xiaochuan said: the exchange rate is not the main tool to manage inflation. To solve the domestic inflation pressure, we must base on the comprehensive use of fiscal policy and monetary policy, and use interest rate, deposit reserve ratio, open market operation and other monetary policy tools to control prices. We should keep the RMB exchange rate at a reasonable and balanced level. We must not abandon the end by end in order to curb inflation and disrupt the direction and steps of exchange rate reform.
5. No, the RMB will appreciate and the US dollar will depreciate. Hedge with gold or physical assets, such as houses.
6.
Strictly speaking, nothing can completely resist inflation, but more stable investment methods such as gold and real estate can resist inflation to a certain extent
inflation may lead to the transfer of social wealth to the rich, but in general, inflation is the inevitable consequence of the measures taken by the state to effectively affect the macroeconomic operation. Many economists believe that moderate and benign inflation is concive to economic development
inflation is a complex economic phenomenon with various causes
extended data:
manifestation
generally speaking, inflation will inevitably lead to price rise, but it can not be said that all price rises are inflation. There are many factors affecting the price rise. Author Sangong said: inflation writes the price history, and the relationship between supply and demand depicts the price band
1. The circulation of banknotes must be limited to the quantity needed in circulation. If too many banknotes are issued, it will cause the devaluation of banknotes and the price will rise
The commodity price is directly proportional to the commodity value, and the commodity price will rise with the increase of commodity value The price is affected by the relationship between supply and demand, when the supply of goods exceeds the demand, the price will rise 4. Policy adjustment and rationalization of price relationship will lead to price increase Poor commodity circulation, poor market management, arbitrary charges and fines will also lead to the rise of commodity prices. It can be seen that inflation is only when the price rise is caused by the issue of too many banknotes7. 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.
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.
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