The influence of digital currency on inflation
Publish: 2021-04-23 09:46:14
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. Isn't the money paid online deposited in the bank by you...
strictly speaking, this is not electronic money, this is M0, cash
as for impact, it is equivalent to cash
I thought the so-called electronic currency was the gold coin in the online game
strictly speaking, this is not electronic money, this is M0, cash
as for impact, it is equivalent to cash
I thought the so-called electronic currency was the gold coin in the online game
4. I will
first of all, under the goal of stability policy, we prove that the separation between the growth rate of money supply and the inflation rate is caused by demand shock and monetary shock, so we suspect that the reason why the price inflation effect of current monetary policy is reced is that there are reverse demand shock and monetary shock. In this regard, we use cointegration relationship and ECM model to test. The test results show that there is a positive long-term cointegration relationship between the growth rate of money supply and the inflation rate in China (see cointegration equation (15)), which shows that China's monetary policy still has the ability to ultimately affect the price level, and monetary policy is still the main policy way of price level adjustment. In the long-term equilibrium relationship expressed by cointegration equation (15), the multiplier of money stock level to inflation rate is 0.983. After difference, it shows that 98% of money supply growth rate will be transferred to price inflation, and the long-term neutrality of money variable is still obvious. Therefore, the future economic growth still mainly depends on the expansion of the actual economic scale. At present, on the basis of continuing to adjust the total demand, we should promote the rapid economic growth by cultivating the total demand and realizing the total demand
secondly, by separating supply shock and monetary shock, we find that there are obvious signs of these two kinds of shocks in the current economy, and the direction of shock is opposite to that of price change, which is the main reason for the slight deflation and the decrease of nominal effect of monetary policy. In the ECM model, the overall effect (regression coefficient sum) of various shocks is opposite to the growth rate of money supply, which clearly reflects the impact direction of economic shocks on money supply and price level. The estimation results of ECM model show that the short-term fluctuation between the growth rate of money supply and the inflation rate has brought about a significant deviation between them e to the al impact of demand shock and money shock. The shortage of aggregate demand makes it impossible for the economy to realize flexible quantity adjustment, which leads to downward nominal price adjustment; The decline of nominal interest rate and price level leads to the increase of uncertainty of future income expectation, increases the money holding of residents' consumption, and slows down the speed of money circulation. In addition, the volatility, which represents the intensity of demand shock and currency shock, is also significantly weakened (see Figure 6). This is not only a sign that the gap of insufficient aggregate demand has not been widened, but also a reflection of the positive color of the stable monetary policy
finally, although the current velocity shock and demand shock of money circulation do not show any signs of continuous expansion, they do not show the characteristics of fast convergence to equilibrium. The stability of economic shock shows that the inflation rate, like the economic growth rate, will form a relatively stable stage, which means that deflation, like inflation, will last for a period of time once it is formed. Therefore, the impact of active monetary policy on the price level will also be a long process. Corresponding to the "soft landing" of China's economy, the future expansion of China's economy will also be a period of "soft expansion". In the case of short-term deviation of money supply and price level caused by demand shock, China's economy in the period of "soft expansion" is bound to be accompanied by the slow recovery of price level. Therefore, based on the influence mechanism of monetary policy on the change of price level, we should try our best to prevent the nominal interest rate from falling continuously in the operation of monetary policy, so as to maintain the opportunity cost of money holding, and increase the money supply moderately at the same time; By recing liquidity constraints and incing positive currency shocks, etc; To activate the precipitation of money stock in asset bubbles and release some non circulating monetary holdings, these measures will help ease deflationary pressure or prevent deflation from spreading.
first of all, under the goal of stability policy, we prove that the separation between the growth rate of money supply and the inflation rate is caused by demand shock and monetary shock, so we suspect that the reason why the price inflation effect of current monetary policy is reced is that there are reverse demand shock and monetary shock. In this regard, we use cointegration relationship and ECM model to test. The test results show that there is a positive long-term cointegration relationship between the growth rate of money supply and the inflation rate in China (see cointegration equation (15)), which shows that China's monetary policy still has the ability to ultimately affect the price level, and monetary policy is still the main policy way of price level adjustment. In the long-term equilibrium relationship expressed by cointegration equation (15), the multiplier of money stock level to inflation rate is 0.983. After difference, it shows that 98% of money supply growth rate will be transferred to price inflation, and the long-term neutrality of money variable is still obvious. Therefore, the future economic growth still mainly depends on the expansion of the actual economic scale. At present, on the basis of continuing to adjust the total demand, we should promote the rapid economic growth by cultivating the total demand and realizing the total demand
secondly, by separating supply shock and monetary shock, we find that there are obvious signs of these two kinds of shocks in the current economy, and the direction of shock is opposite to that of price change, which is the main reason for the slight deflation and the decrease of nominal effect of monetary policy. In the ECM model, the overall effect (regression coefficient sum) of various shocks is opposite to the growth rate of money supply, which clearly reflects the impact direction of economic shocks on money supply and price level. The estimation results of ECM model show that the short-term fluctuation between the growth rate of money supply and the inflation rate has brought about a significant deviation between them e to the al impact of demand shock and money shock. The shortage of aggregate demand makes it impossible for the economy to realize flexible quantity adjustment, which leads to downward nominal price adjustment; The decline of nominal interest rate and price level leads to the increase of uncertainty of future income expectation, increases the money holding of residents' consumption, and slows down the speed of money circulation. In addition, the volatility, which represents the intensity of demand shock and currency shock, is also significantly weakened (see Figure 6). This is not only a sign that the gap of insufficient aggregate demand has not been widened, but also a reflection of the positive color of the stable monetary policy
finally, although the current velocity shock and demand shock of money circulation do not show any signs of continuous expansion, they do not show the characteristics of fast convergence to equilibrium. The stability of economic shock shows that the inflation rate, like the economic growth rate, will form a relatively stable stage, which means that deflation, like inflation, will last for a period of time once it is formed. Therefore, the impact of active monetary policy on the price level will also be a long process. Corresponding to the "soft landing" of China's economy, the future expansion of China's economy will also be a period of "soft expansion". In the case of short-term deviation of money supply and price level caused by demand shock, China's economy in the period of "soft expansion" is bound to be accompanied by the slow recovery of price level. Therefore, based on the influence mechanism of monetary policy on the change of price level, we should try our best to prevent the nominal interest rate from falling continuously in the operation of monetary policy, so as to maintain the opportunity cost of money holding, and increase the money supply moderately at the same time; By recing liquidity constraints and incing positive currency shocks, etc; To activate the precipitation of money stock in asset bubbles and release some non circulating monetary holdings, these measures will help ease deflationary pressure or prevent deflation from spreading.
5. The improvement of economic growth rate and quality standard requires that macro-control must control inflation and control the excessive inflation of asset sector more strictly. The reasons include the following. First, the rising inflation will worsen the prospects of economic growth, affect social confidence in economic growth, and make it difficult to achieve the goal of economic growth. Second, inflation and asset sector inflation will not be concive to the adjustment of the economic structure, resulting in the flow of resources inclined to speculation. Third, more importantly, international experience shows that the period of inflation in the price and asset sectors is usually the period of sharp widening of income distribution gap, which makes it difficult for the low-income class to smoothly share the fruits of economic growth, and makes it difficult to fulfill their commitment to reverse the deterioration of income gap as soon as possible
from all aspects of information, the focus of macro-economy will be more and more on the asset sector. It is true that overall prices will continue to bear strong upward pressure. From January to September, CPI still rose by 6.9%. Nevertheless, the possibility of a full-scale inflation is not great. After all, with the turnover of pig proction cycle, meat prices have peaked and fallen; More importantly, with 70% of China's instries in the context of overcapacity, comprehensive inflation is not very realistic
the continuous expansion of the asset sector is changing people's inflation expectations; Moreover, high asset prices play a key guiding role in the mutually reinforcing mechanism of RMB appreciation expectation and hot money inflow. The asset sector, not the banking sector, is where international capital flows in. As a result, the changes in the asset sector are in a central position, no matter for the domestic excess liquidity, credit expansion, inflation expectations, or for the RMB appreciation expectations, international hot money inflows, foreign exchange reserves increase and so on
more comprehensive and effective macroeconomic management will rece the pressure of monetary policy. On the one hand, the effectiveness of controlling inflation pressure, especially asset prices, will increase the difficulty of regulation. Increasing the income of the low-income class and actively promoting the development of the direct financing market may really start consumer demand, make inflation pressure become a normal, and also lead to a surge in demand for the asset sector. With the implementation of these measures, the pressure of monetary policy will increase
monetary policy in this round of macro-control, the central bank is the most firm expression of inflation pressure, and continues to use all available monetary policies to control credit expansion, recover liquidity and control inflation expectations. The central bank has raised interest rates five times in a row this year. Recently, it announced once again that it would raise the deposit reserve ratio by 0.5 percentage point to 13% from the 25th of this month. This is the eighth time that the central bank has raised the deposit reserve ratio this year, and it has been the same as the historical high of 13% set in 1988. At the same time, the central bank spared no effort in issuing central bank bills, window guidance, and establishing China Investment Corporation
another measure to alleviate the pressure of monetary policy is the graal increase of the cost of proction factors and resources and environment. This means that China has been more and more inclined to use the current good situation to solve the long-term lagging problems of social security, income distribution and the transformation of economic growth mode. Economic principles show that if the proction cost of enterprises is reasonably reflected, it will be equivalent to the appreciation of RMB. Although this is a long-term process, the existing information shows that RMB appreciation is also a long-term process
in short, in the process of speeding up the construction of a well-off society, the improvement of institutional infrastructure is helpful to put macro-control on a more stable platform; At the same time, under the closer coordination of regulatory policies, a new regulatory system is about to emerge. In this context, monetary policy will be able to focus more and more on inflation, asset prices and other common goals, and the monetary policy with less and less worries will play a more resolute role in controlling overheating.
from all aspects of information, the focus of macro-economy will be more and more on the asset sector. It is true that overall prices will continue to bear strong upward pressure. From January to September, CPI still rose by 6.9%. Nevertheless, the possibility of a full-scale inflation is not great. After all, with the turnover of pig proction cycle, meat prices have peaked and fallen; More importantly, with 70% of China's instries in the context of overcapacity, comprehensive inflation is not very realistic
the continuous expansion of the asset sector is changing people's inflation expectations; Moreover, high asset prices play a key guiding role in the mutually reinforcing mechanism of RMB appreciation expectation and hot money inflow. The asset sector, not the banking sector, is where international capital flows in. As a result, the changes in the asset sector are in a central position, no matter for the domestic excess liquidity, credit expansion, inflation expectations, or for the RMB appreciation expectations, international hot money inflows, foreign exchange reserves increase and so on
more comprehensive and effective macroeconomic management will rece the pressure of monetary policy. On the one hand, the effectiveness of controlling inflation pressure, especially asset prices, will increase the difficulty of regulation. Increasing the income of the low-income class and actively promoting the development of the direct financing market may really start consumer demand, make inflation pressure become a normal, and also lead to a surge in demand for the asset sector. With the implementation of these measures, the pressure of monetary policy will increase
monetary policy in this round of macro-control, the central bank is the most firm expression of inflation pressure, and continues to use all available monetary policies to control credit expansion, recover liquidity and control inflation expectations. The central bank has raised interest rates five times in a row this year. Recently, it announced once again that it would raise the deposit reserve ratio by 0.5 percentage point to 13% from the 25th of this month. This is the eighth time that the central bank has raised the deposit reserve ratio this year, and it has been the same as the historical high of 13% set in 1988. At the same time, the central bank spared no effort in issuing central bank bills, window guidance, and establishing China Investment Corporation
another measure to alleviate the pressure of monetary policy is the graal increase of the cost of proction factors and resources and environment. This means that China has been more and more inclined to use the current good situation to solve the long-term lagging problems of social security, income distribution and the transformation of economic growth mode. Economic principles show that if the proction cost of enterprises is reasonably reflected, it will be equivalent to the appreciation of RMB. Although this is a long-term process, the existing information shows that RMB appreciation is also a long-term process
in short, in the process of speeding up the construction of a well-off society, the improvement of institutional infrastructure is helpful to put macro-control on a more stable platform; At the same time, under the closer coordination of regulatory policies, a new regulatory system is about to emerge. In this context, monetary policy will be able to focus more and more on inflation, asset prices and other common goals, and the monetary policy with less and less worries will play a more resolute role in controlling overheating.
6.
The reason for inflation is that the currency is over issued. In this regard as the premise to draw the conclusion of the impact of inflation
1
reason: more money chasing limited commodities
2
reason: the cost of raw materials and labor must meet the necessary survival needs at the same time e to the rise of commodity prices
3. Savings decreased
reasons: prices continue to rise, bank interest rates are not enough to resist inflation, the willingness to save has declined, and capital flows to other investment procts (assets)
(4) currency devaluationreason: over issuance of currency will result in devaluation of domestic currency, frustration of import-oriented enterprises and export-oriented income
Economic risk increased If inflation continues for a long time, it is definitely a bad thing. But if the medium and short term is concive to economic development. The precondition is that the distribution of new money is reasonable and the financial leverage is controllable6. Inflation period indicates economic prosperity and low unemployment rate
it refers to such a situation in currency circulation: the amount of money put into circulation is mainly too much paper money, which greatly exceeds the actual demand for circulation, resulting in currency devaluation
extended data
classified by the intensity of inflation
1, low inflation
low inflation is characterized by slow and predictable price rise. It can be defined as one digit annual inflation rate. At this time, prices are relatively stable, and people trust money
This kind of inflation comes into being when the total price level rises at a 2-digit or 3-digit rate of 20%, 100% or even 200% per year. Once this inflation situation is formed and stabilized, there will be serious economic distortions Hyperinflation is the most vicious inflation. Money has almost no fixed value and prices are increasing all the time. Its disastrous impact makes the market economy useless4. Classified by the causes of inflation,
demand pull-up inflation (the type of inflation, characterized by spontaneity, incement and support, is characterized by insufficient supply of goods and services and continuous price rise e to excessive growth of social aggregate demand, which exceeds the growth rate of social aggregate supply) Cost driven inflation, also known as cost inflation or supply inflation, refers to the continuous and significant rise of general price level caused by the increase of supply side cost without excess demand
Import inflation refers to the continuous rise of domestic prices (caused by exchange rate) e to the rise of foreign commodity or proction factor prices Structural inflation refers to the phenomenon that the price rise of some procts is caused by excessive demand for procts in some sectors when the total demand is not enough7. There are two kinds of inflation: one is global inflation, which is a punishment to poor countries and a gift to deficit countries; On the other hand, domestic inflation is a punishment for low-income people and a gift to capital players. Because poor countries have nowhere to turn to inflation, and the pace of raising wages for the poor is far behind the pace of inflation, inflation is a process of wealth mobilization in the era of asset bubbles. The inflation has made the middle and low-income groups suffer, because the indispensable food price has an impact on the rise of CPI; Contribution rate & quot; 74%, of which vegetable prices rose by 31%; Residential prices rose 4.9%, contributing 16.6% to CPI. Clothing, food, housing and transportation, food and housing are on the rise, and the prices of clothing and transportation are also on the rise. However, the most painful thing for ordinary citizens is that our wages have not kept pace with the rise of prices. Therefore, inflation is an indisputable fact, so the primary task of governments at all levels is to stabilize the rising trend of prices, which has become the top priority of governments at all levels.
8. In fact, the problem is to change the method to test the understanding of monetary policy corresponding to inflation. On the other hand, what monetary policy should be adopted in the period of inflation. Then you understand the problem. It's easy to do the title
first of all, use your knowledge to explain the impact of inflation on the economy, what is hyperinflation and its consequences. Then it explains what kind of monetary policy to implement, why to implement this strategy, and what kind of combination to achieve the effect. OK
if you have a method, it depends on you< br />GOOD LUCK
first of all, use your knowledge to explain the impact of inflation on the economy, what is hyperinflation and its consequences. Then it explains what kind of monetary policy to implement, why to implement this strategy, and what kind of combination to achieve the effect. OK
if you have a method, it depends on you< br />GOOD LUCK
9. The influence of inflation: the occupation of funds increases greatly, which increases the capital demand of enterprises. As a result, the profit of the enterprise is falsely increased, and the return fund is lost e to profit distribution. It will increase the profit and increase the cost of equity capital. It causes the price of securities to decline and increases the difficulty of financing. It causes the shortage of capital supply and increases the difficulty of financing. Inflation will lead to currency devaluation, rising prices, declining savings, rising costs, rising unemployment rate and other risks.
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