Digital currency can control inflation
Publish: 2021-04-17 20:23:39
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. Inflation is the price rise that causes the devaluation of a country's currency. The essential difference between inflation and general price rise: general price rise refers to the temporary, partial and reversible price rise of a certain commodity e to the imbalance of supply and demand, which will not cause currency devaluation; Inflation is a sustained, universal and irreversible rise in the prices of major domestic commodities that can cause the devaluation of a country's currency. The direct cause of inflation is that the amount of money in circulation in a country is greater than its effective economic aggregate
deflation is deflation: when the amount of money in circulation in the market decreases, the people's money income decreases, and the purchasing power decreases, which affects the prices and causes deflation. The long-term monetary tightening will restrain investment and proction, lead to the rise of unemployment rate and economic recession
these two are inflation and deflation respectively.
deflation is deflation: when the amount of money in circulation in the market decreases, the people's money income decreases, and the purchasing power decreases, which affects the prices and causes deflation. The long-term monetary tightening will restrain investment and proction, lead to the rise of unemployment rate and economic recession
these two are inflation and deflation respectively.
4. When the base money supply is fixed, if the interest rate is raised, the money multiplier will decrease, the M2 supply of broad money will decrease, the value of unit money will increase, the amount of capital flowing from the market to banks will increase, the borrowing cost will increase, the investment will decrease, and the inflation rate will decrease
5. 1 Control requirements
one of the basic reasons for inflation is that aggregate demand exceeds aggregate supply. Therefore, the first thing to control inflation is to control demand and implement tightening policy. Austerity policy is the traditional means to deal with inflation in various countries, and it is the most widely used and effective policy measure so far. Its main contents include tightening fiscal policy, tightening monetary policy, tightening income policy and so on
1. Tight fiscal policy. Tight fiscal policy is mainly to control inflation by recing fiscal expenditure and increasing taxes. The purpose of recing fiscal expenditure is to rece the government's demand by limiting expenditure, so as to rece the total demand. The main measures are: recing the national capital construction and investment expenditure, limiting the investment in public utilities, recing the expenditure of government departments, recing social welfare expenditure and so on. The main purpose of tax increase is to increase the tax revenue of enterprises and indivials. After tax increase, the income of enterprises and indivials will decrease, thus recing the level of investment and consumption< 2. Tight monetary policy. Tight monetary policy is also known as "tightening monetary policy". The direct cause of inflation is excessive money supply. Therefore, to rece the inflation rate, the central bank can rece the money supply in circulation. The specific measures include:
(1) selling government bonds through open market business, withdrawing money and recing the stock in the economic system
(2) increase interest rates, such as rediscount rate, discount rate, statutory deposit reserve ratio, bank deposit rate, etc. The rise of interest rate urges people to save more money, which reces the consumption demand. The rise of interest rate makes the investment cost rise, which also inhibits the investment demand
3. Tight income policy. The tightening income policy is an effective way to deal with the cost pushing inflation. Its main content is to take compulsory measures to restrict the increase of wages and monopoly profits, restrain the increase of costs, so as to control the rise of prices. Specifically, it includes the following contents:
(1) wage control. There are four main ways of wage control. First, moral advice and guidance. That is to say, the government formulates a guiding line for wage growth, which can be used as a reference for enterprises. However, the government can only exhort and advise, not directly intervene. Second, it should be settled through consultation. That is to make the trade union and the enterprise reach an agreement on the issue of wages under the intervention of the government. Third, wage tax. Special taxes will be levied on enterprises with excessive wage increases. Fourth, freeze wages. That is to say, the government should fix the wage or growth rate of the whole society compulsorily and not increase it arbitrarily< (2) profit control. It means that the government takes compulsory measures to restrict the profits of enterprises that may make huge profits. The methods of profit control include controlling profit rate and imposing higher income tax on excess profits. In addition, some countries also restrict monopoly profits by enacting some laws and regulations, and directly impose price control on public utility procts< (2) increasing supply
the reason for inflation is that the total demand of society is greater than the total supply. To control inflation, on the one hand, we should rece the total demand through tightening policies, on the other hand, we should increase the total supply. The main measures are: tax rection to improve the working willingness and labor proctivity of workers, increase the investment desire of enterprises, so as to drive the increase of total supply; Rece the government's restrictions on enterprises, so that enterprises can better expand the supply of goods; Enterprises are encouraged to adopt new technologies, update equipment and adjust instrial structure< (3) adjust the economic structure
as one of the reasons for inflation is the imbalance of economic structure, one of the solutions to control inflation is to adjust the economic structure and maintain a certain proportion among various instrial sectors, so as to avoid the structural imbalance of supply and demand of certain procts such as grain and raw materials, which will push up prices< (4) other anti inflation measures
1. This kind of measure is mainly adopted by some less developed countries. Its main contents include: compulsory suspension of some construction projects, rectification of market circulation, monopoly of some commodities, supply of consumer goods with tickets, etc
2. Maintain low-speed economic growth. As the rapid economic growth is often accompanied by inflation, in recent years, governments are faced with two choices; Or maintain a higher economic growth rate, but at the same time maintain a higher inflation rate; Or rece the speed of economic growth, or even the economic recession to lower the inflation rate. Many developed countries tend to choose the latter.
one of the basic reasons for inflation is that aggregate demand exceeds aggregate supply. Therefore, the first thing to control inflation is to control demand and implement tightening policy. Austerity policy is the traditional means to deal with inflation in various countries, and it is the most widely used and effective policy measure so far. Its main contents include tightening fiscal policy, tightening monetary policy, tightening income policy and so on
1. Tight fiscal policy. Tight fiscal policy is mainly to control inflation by recing fiscal expenditure and increasing taxes. The purpose of recing fiscal expenditure is to rece the government's demand by limiting expenditure, so as to rece the total demand. The main measures are: recing the national capital construction and investment expenditure, limiting the investment in public utilities, recing the expenditure of government departments, recing social welfare expenditure and so on. The main purpose of tax increase is to increase the tax revenue of enterprises and indivials. After tax increase, the income of enterprises and indivials will decrease, thus recing the level of investment and consumption< 2. Tight monetary policy. Tight monetary policy is also known as "tightening monetary policy". The direct cause of inflation is excessive money supply. Therefore, to rece the inflation rate, the central bank can rece the money supply in circulation. The specific measures include:
(1) selling government bonds through open market business, withdrawing money and recing the stock in the economic system
(2) increase interest rates, such as rediscount rate, discount rate, statutory deposit reserve ratio, bank deposit rate, etc. The rise of interest rate urges people to save more money, which reces the consumption demand. The rise of interest rate makes the investment cost rise, which also inhibits the investment demand
3. Tight income policy. The tightening income policy is an effective way to deal with the cost pushing inflation. Its main content is to take compulsory measures to restrict the increase of wages and monopoly profits, restrain the increase of costs, so as to control the rise of prices. Specifically, it includes the following contents:
(1) wage control. There are four main ways of wage control. First, moral advice and guidance. That is to say, the government formulates a guiding line for wage growth, which can be used as a reference for enterprises. However, the government can only exhort and advise, not directly intervene. Second, it should be settled through consultation. That is to make the trade union and the enterprise reach an agreement on the issue of wages under the intervention of the government. Third, wage tax. Special taxes will be levied on enterprises with excessive wage increases. Fourth, freeze wages. That is to say, the government should fix the wage or growth rate of the whole society compulsorily and not increase it arbitrarily< (2) profit control. It means that the government takes compulsory measures to restrict the profits of enterprises that may make huge profits. The methods of profit control include controlling profit rate and imposing higher income tax on excess profits. In addition, some countries also restrict monopoly profits by enacting some laws and regulations, and directly impose price control on public utility procts< (2) increasing supply
the reason for inflation is that the total demand of society is greater than the total supply. To control inflation, on the one hand, we should rece the total demand through tightening policies, on the other hand, we should increase the total supply. The main measures are: tax rection to improve the working willingness and labor proctivity of workers, increase the investment desire of enterprises, so as to drive the increase of total supply; Rece the government's restrictions on enterprises, so that enterprises can better expand the supply of goods; Enterprises are encouraged to adopt new technologies, update equipment and adjust instrial structure< (3) adjust the economic structure
as one of the reasons for inflation is the imbalance of economic structure, one of the solutions to control inflation is to adjust the economic structure and maintain a certain proportion among various instrial sectors, so as to avoid the structural imbalance of supply and demand of certain procts such as grain and raw materials, which will push up prices< (4) other anti inflation measures
1. This kind of measure is mainly adopted by some less developed countries. Its main contents include: compulsory suspension of some construction projects, rectification of market circulation, monopoly of some commodities, supply of consumer goods with tickets, etc
2. Maintain low-speed economic growth. As the rapid economic growth is often accompanied by inflation, in recent years, governments are faced with two choices; Or maintain a higher economic growth rate, but at the same time maintain a higher inflation rate; Or rece the speed of economic growth, or even the economic recession to lower the inflation rate. Many developed countries tend to choose the latter.
6. To put it more simply, inflation means that prices are rising. If prices are rising slowly, it is called moderate inflation. If prices are rising sharply, you have to carry a sack of money to buy rice. This is called hyperinflation
then why do prices rise? One possibility, of course, is the rise of raw materials, which leads to the rise of proct prices. For example, crude oil was only more than US $10 a barrel in the past eight years, which is cheaper than mineral water. Now it is about US $130 a barrel, so the price rise of oil subsidiary instries is understandable. Of course, the more realistic reason is the excessive issuance of money. For example, China's economy is growing by 10%. But if the issuance of money is growing by 20%, what can we do with the extra money? It is only reflected in the rise of prices. When you look at the newspapers in 2006 and 2007, you often see that with 20% to 30% of new bank loans and more than 40% of new loans, China's GDP has only risen by how much. How can so many new procts come out to absorb new money? No wonder there is no inflation. That's how house prices have risen. Those real estate developers also licked their faces and said that because of urbanization, there is more demand. That's funny
If I understand this, I don't need to explain why raising interest rate and raising reserve ratio can suppress inflation. To put it bluntly, it is to rece money supply. bring order out of chaos. The effect immediately came out, real estate has begun to do push ups
of course, the rise of oil mentioned above is also caused by excessive money supply, but that is the United States. It's a long story. Let's talk about it when we have a chance.
then why do prices rise? One possibility, of course, is the rise of raw materials, which leads to the rise of proct prices. For example, crude oil was only more than US $10 a barrel in the past eight years, which is cheaper than mineral water. Now it is about US $130 a barrel, so the price rise of oil subsidiary instries is understandable. Of course, the more realistic reason is the excessive issuance of money. For example, China's economy is growing by 10%. But if the issuance of money is growing by 20%, what can we do with the extra money? It is only reflected in the rise of prices. When you look at the newspapers in 2006 and 2007, you often see that with 20% to 30% of new bank loans and more than 40% of new loans, China's GDP has only risen by how much. How can so many new procts come out to absorb new money? No wonder there is no inflation. That's how house prices have risen. Those real estate developers also licked their faces and said that because of urbanization, there is more demand. That's funny
If I understand this, I don't need to explain why raising interest rate and raising reserve ratio can suppress inflation. To put it bluntly, it is to rece money supply. bring order out of chaos. The effect immediately came out, real estate has begun to do push ups
of course, the rise of oil mentioned above is also caused by excessive money supply, but that is the United States. It's a long story. Let's talk about it when we have a chance.
7. 1. Selling national debt and recovering currency; 2. Raising interest rates; 3. Rece the amount of loans (planned economy); 4. Raise the reserve ratio and adjust the monetary multiplier.
8. The essence of inflation is that money supply is greater than money demand. A country's issuing money will only aggravate inflation
China's current price rise and inflation pressure is caused by many reasons
1. Imbalance between supply and demand, such as the food instry, is a demand driven inflation
2 Cost driven international prices, such as crude oil and iron ore, rise in domestic prices of these instries
3. Domestic investment is overheating, a large amount of liquidity flows to the real estate market, and excess liquidity leads to increased inflation pressure
4. International trade imbalance and huge surpluses exist for a long time, foreign exchange accounts for a large amount of money, and excessive RMB investment
5 The expectation of RMB appreciation makes a large amount of international capital flow into China
so we should take many measures to control the price rise at the same time
1. Speed up the adjustment of instrial structure
vigorously develop agriculture, especially intensive agriculture, increase the output of agricultural procts
resolutely implement energy saving and emission rection, restrict the development of "two high" instries, and encourage the development of new energy and new technologies to rece dependence on foreign energy resources.
promote the healthy and stable development of the stock market, prevent the economic bubble
2, and strengthen credit management and control liquidity.
the tightening monetary policy is being implemented, such as raising the deposit reserve ratio, issuing central bank bills, etc., to recover liquidity
optimize the credit structure, incline to small and medium-sized enterprises and emerging instries, so as to digest the relative excess liquidity
3 Through tax and other financial means and exchange rate means to improve the situation of international trade imbalance, such as recing the export tax rebate rate and appreciation of RMB, change the situation of huge surplus, rece foreign exchange and improve the situation of excess liquidity
China's current price rise and inflation pressure is caused by many reasons
1. Imbalance between supply and demand, such as the food instry, is a demand driven inflation
2 Cost driven international prices, such as crude oil and iron ore, rise in domestic prices of these instries
3. Domestic investment is overheating, a large amount of liquidity flows to the real estate market, and excess liquidity leads to increased inflation pressure
4. International trade imbalance and huge surpluses exist for a long time, foreign exchange accounts for a large amount of money, and excessive RMB investment
5 The expectation of RMB appreciation makes a large amount of international capital flow into China
so we should take many measures to control the price rise at the same time
1. Speed up the adjustment of instrial structure
vigorously develop agriculture, especially intensive agriculture, increase the output of agricultural procts
resolutely implement energy saving and emission rection, restrict the development of "two high" instries, and encourage the development of new energy and new technologies to rece dependence on foreign energy resources.
promote the healthy and stable development of the stock market, prevent the economic bubble
2, and strengthen credit management and control liquidity.
the tightening monetary policy is being implemented, such as raising the deposit reserve ratio, issuing central bank bills, etc., to recover liquidity
optimize the credit structure, incline to small and medium-sized enterprises and emerging instries, so as to digest the relative excess liquidity
3 Through tax and other financial means and exchange rate means to improve the situation of international trade imbalance, such as recing the export tax rebate rate and appreciation of RMB, change the situation of huge surplus, rece foreign exchange and improve the situation of excess liquidity
9. When the general bank raises the deposit interest rate, the common people will be willing to save money to the bank. The income is good and there is no risk. Compared with stock futures, it is much safer. If the capital in hand is less, the consumption ability will decline. The decline of consumption ability will lead to the oversupply of goods in the market, and the proct price will fall; Similarly, if the loan interest rate is raised, the loans available to enterprises will be reced, and the funds invested in real estate and infrastructure will be limited. At the same time, it will play a role in curbing house prices. Isn't that the same as curbing inflation
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