The relationship between virtual currency and inflation
Publish: 2021-04-09 17:25:58
1. Hehe; virtual currency earned from the game, & quot& quot; If it is traded into RMB, is the demand for RMB increasing& quot; Yes, that's exactly right.
& quot; And the real money supply can not meet the money demand. Will it cause deflation? But most of the statements about the impact of virtual currency on reality say that it will cause inflation. Why do you say that& quot;
the key lies in the liquidity of virtual currency. If the virtual currency itself can be accepted and circulated in the market like RMB, then issuing virtual currency is equivalent to issuing RMB, and the issuance of virtual currency is very random. If a large number of virtual currencies are issued in the game, there is the possibility of inflation in theory.
but in fact, this situation is very difficult to achieve The essence of unreliability determines that it is difficult for RBM to achieve its acceptance and circulation; Second, the issuance of virtual currency is actually a hedge against the game's demand for RMB. Therefore, the government's restrictions on the use of virtual currency are just a precautionary measure.
& quot; And the real money supply can not meet the money demand. Will it cause deflation? But most of the statements about the impact of virtual currency on reality say that it will cause inflation. Why do you say that& quot;
the key lies in the liquidity of virtual currency. If the virtual currency itself can be accepted and circulated in the market like RMB, then issuing virtual currency is equivalent to issuing RMB, and the issuance of virtual currency is very random. If a large number of virtual currencies are issued in the game, there is the possibility of inflation in theory.
but in fact, this situation is very difficult to achieve The essence of unreliability determines that it is difficult for RBM to achieve its acceptance and circulation; Second, the issuance of virtual currency is actually a hedge against the game's demand for RMB. Therefore, the government's restrictions on the use of virtual currency are just a precautionary measure.
2. 1. It's stipulated that operators can't convert game currency into RMB
2. Specifically, whether the equipment is suitable or the materials are suitable, you should be very clear that you are playing this game, and you should know what is more valuable
2. Specifically, whether the equipment is suitable or the materials are suitable, you should be very clear that you are playing this game, and you should know what is more valuable
3. At present, there are many kinds of "currencies" on the Internet. Tencent's "Q currency", Shanda's "Yuanbao", Paradise currency, Warcraft currency and so on have become hot "currencies" on the Internet
experts believe that if network operators are allowed to issue unlimited virtual currencies that can be exchanged with RMB, it is likely to replace RMB as the general equivalent of some online transactions. Once such disorderly transactions are rampant, it is bound to impact the market position of RMB and destroy China's financial order
from the point of view of behavioral economics, as a general equivalent, the "price" of "equal" in money is called value in language, but it actually refers to utility. Virtual currency does not represent the "effect" of general "price", but the value itself. Therefore, under the intervention of market and policy, the virtual money instry still has the characteristics of market supply and demand of deflation and inflation
will run into the mortal enemy of human economy, & quot; Inflation & quot;
experts believe that if network operators are allowed to issue unlimited virtual currencies that can be exchanged with RMB, it is likely to replace RMB as the general equivalent of some online transactions. Once such disorderly transactions are rampant, it is bound to impact the market position of RMB and destroy China's financial order
from the point of view of behavioral economics, as a general equivalent, the "price" of "equal" in money is called value in language, but it actually refers to utility. Virtual currency does not represent the "effect" of general "price", but the value itself. Therefore, under the intervention of market and policy, the virtual money instry still has the characteristics of market supply and demand of deflation and inflation
will run into the mortal enemy of human economy, & quot; Inflation & quot;
4. Of course, a lot of online games, for example, just play when each player's money is not much, the price of the goods is correspondingly low, when the time is long, more experts, more money, in order to buy good goods, it is inevitable that someone bidding, time is long, natural things are not worth money, money is also not worth money
5.
Relationship: inflation is opposite to currency appreciation. Inflation will lead to currency devaluation, let alone currency appreciation
Inflation:because the money supply is greater than the actual demand for money, that is, the real purchasing power is greater than the output supply, leading to currency devaluation, resulting in a sustained and general rise in prices for a period of time. Its essence is that the total social demand is greater than the total social supply
2. Currency appreciation:
under the condition of gold standard, increase the legal gold content of domestic currency and raise its price to foreign currency. Some countries adopt the method of appreciation of their own currency to prevent the impact of foreign currency and resist the import of foreign inflation
extended data
the most direct manifestation of inflation is the devaluation of banknotes, the rise of prices and the decrease of purchasing power. Deflation is often accompanied by the decline of proction, the contraction of market, the decrease of enterprise profit margin, the decrease of proction investment, the increase of unemployment, the decrease of income and the lack of economic growth. The main performance is that the prices are low and the prices of most goods and services are falling
No matter what type of inflation, there is only one direct reason, that is, excessive money supply. Too much money supply corresponds to the fixed amount of goods and services, which will inevitably lead to currency depreciation, price rise and inflation6.
1. Currency devaluation is only one kind of inflation. Inflation generally refers to the devaluation of banknotes and the rise of prices caused by the issue of banknotes exceeding the amount of money actually needed in commodity circulation
There are three manifestations of inflation: first, the devaluation of currency; second, the continuous rise of prices; third, the overheated economy. The essence of inflation is that the total social demand is greater than the total supply When the currency devalues, the value contained in or represented by the unit currency decreases, that is, the price of the unit currency decreases. There are many reasons for devaluation. The first reason is inflation, the second reason is the rise of foreign exchange rate, and the third reason is that the amount of money issued by the state is more than the amount of money needed in real life. One of the main reasons for inflation is that the amount of paper money issued exceeds the amount of money actually needed in circulation Sometimes inflation does not necessarily lead to the devaluation of the local currency, and sometimes currency appreciation will aggravate inflation
extended data
currency devaluation (also known as currency devaluation) is the symmetry of currency appreciation, which refers to the decline of the value contained in or represented by the unit currency, that is, the decline of the unit currency price
the devaluation of currency leads to the rise of domestic prices. However, currency devaluation can stimulate proction under certain conditions, and rece the price of domestic goods abroad, which is concive to expanding exports and recing imports. Therefore, after the Second World War, many countries used it as a means of anti economic crisis and stimulating economic development
(see online devaluation)
7. Inflation refers to the continuous rise in the prices of goods and services. In the event of inflation, the purchasing power of the unit currency will be weakened, which means that it will cost more to buy the same thing. Most economists believe that money supply is directly related to inflation. But it is not easy to understand the relationship between money supply and inflation, and the prediction is also very complicated, because inflation is also easily affected by other factors
money supply is related to inflation because a large amount of money usually leads to currency devaluation. Imagine a small town where people's wages are raised by $50 a month. These people may pay $10 a week for gas, but because the pay increase is big enough, they usually don't care if they pay $11 a week for gas now, because it still matches before the rise. This is sometimes the relationship between the increase in money supply and the beginning of inflation. But when the market bears high prices e to the increase of money, consumers can no longer buy goods at the price before inflation, because the purchasing power of money has shrunk
the relationship between money supply and inflation can be used to explain different types of economic theories. In the theory of money quantity (also called monetarism), this relationship is expressed as MV = Pt, or money supply x money circulation speed = price level x transaction. Speed and trade are considered constant, so according to this interpretation, it means that money supply and price are directly related. In Keynesian theory, although there is a direct relationship between money supply and inflation, it is not the only biggest factor affecting inflation and price. Generally speaking, Keynesian theory emphasizes the relationship between aggregate demand and inflation
adjusting money supply is often used to control inflation. When trying to rece inflation in a region, the central bank usually lowers lending rates and raises interest rates. When inflation falls to the target level, these standards are usually relaxed to stimulate the economy. Countries usually use the federal banking system to set loan and interest limits based on economic data
an unreserved increase in money supply can sometimes lead to what is called extreme inflation, which occurs when inflation is extremely high in the short term. Economists usually think that extreme inflation occurs when the inflation rate exceeds 50% in a month, but there are other different ways to evaluate it. Money supply is related to extreme inflation, because this situation can be the result of an economy suddenly issuing a large amount of money, and has nothing to do with the quantity of proction or goods. Still using the first example above, if wages in this small town increase by $500 a month, and then the price of gasoline suddenly doubles, it will lead to extreme inflation.
money supply is related to inflation because a large amount of money usually leads to currency devaluation. Imagine a small town where people's wages are raised by $50 a month. These people may pay $10 a week for gas, but because the pay increase is big enough, they usually don't care if they pay $11 a week for gas now, because it still matches before the rise. This is sometimes the relationship between the increase in money supply and the beginning of inflation. But when the market bears high prices e to the increase of money, consumers can no longer buy goods at the price before inflation, because the purchasing power of money has shrunk
the relationship between money supply and inflation can be used to explain different types of economic theories. In the theory of money quantity (also called monetarism), this relationship is expressed as MV = Pt, or money supply x money circulation speed = price level x transaction. Speed and trade are considered constant, so according to this interpretation, it means that money supply and price are directly related. In Keynesian theory, although there is a direct relationship between money supply and inflation, it is not the only biggest factor affecting inflation and price. Generally speaking, Keynesian theory emphasizes the relationship between aggregate demand and inflation
adjusting money supply is often used to control inflation. When trying to rece inflation in a region, the central bank usually lowers lending rates and raises interest rates. When inflation falls to the target level, these standards are usually relaxed to stimulate the economy. Countries usually use the federal banking system to set loan and interest limits based on economic data
an unreserved increase in money supply can sometimes lead to what is called extreme inflation, which occurs when inflation is extremely high in the short term. Economists usually think that extreme inflation occurs when the inflation rate exceeds 50% in a month, but there are other different ways to evaluate it. Money supply is related to extreme inflation, because this situation can be the result of an economy suddenly issuing a large amount of money, and has nothing to do with the quantity of proction or goods. Still using the first example above, if wages in this small town increase by $500 a month, and then the price of gasoline suddenly doubles, it will lead to extreme inflation.
8. Inflation refers to the phenomenon of currency devaluation and price rise caused by excessive money supply< Inflation is a unique phenomenon in the circulation of paper money, but the circulation of paper money does not necessarily lead to inflation.
} the essence of inflation is the decline of currency value, and the external performance is the rise of prices.
} the currency depreciation in inflation is associated with the continuous rise of the overall price level
} the essence of inflation is the decline of currency value, and the external performance is the rise of prices.
} the currency depreciation in inflation is associated with the continuous rise of the overall price level
9. Inflation is a monetary phenomenon. But the actual situation is much more complicated. There is a large amount of money supply. It takes many links of transmission to cause the rise of prices. Moreover, it is a lag effect. More issuance does not mean more circulation. It is only possible in theory. There is a process of public expectation. That is, when there are conditions and possibilities for inflation, if the public thinks there will be inflation, It will happen.
inflation is mostly considered to be a rise in prices. In fact, it is wrong. If prices are measured in terms of barter, they may not rise. It should be said that the currency has depreciated. No matter how tortuous the intermediate process is, the currency will eventually flood and lose credibility
inflation is mostly considered to be a rise in prices. In fact, it is wrong. If prices are measured in terms of barter, they may not rise. It should be said that the currency has depreciated. No matter how tortuous the intermediate process is, the currency will eventually flood and lose credibility
10. Too much money supply will lead to the general rise of domestic prices, which indicates the phenomenon of inflation.
for example, there are two kinds of commodities in the market, namely, 100 kg soybean, 1 yuan per kg, 100 kg wheat and 2 yuan per kg.
according to the theory of money quantity, py = MV
V is a constant in the short term, py = 100 * 1 + 100 * 2 = 300, So the money needed in the market is 300 yuan
but what happens if the central bank issues 300 yuan more money, because y can't increase suddenly in the short term, so it will inevitably lead to the rise of P, that is, the price will rise, and now 100 yuan can't buy 100 kg of soybeans, that is, the purchasing power of money will decline, This is the so-called inflation.
and the exchange rate is the foreign price of the currency,
for example:
the exchange rate of RMB to the US dollar is 7.8
that is, 1 US dollar can exchange for 7.8 RMB
why is this so? For example, 1 RMB can buy 1 pair of sports shoes in China
1 US dollar can buy 7.8 pairs of sports shoes in the United States, So it's time to exchange 1 US dollar for 7.8 RMB.
this is the so-called purchasing parity theory (Nordic school). You can have a look if you are interested
for example, there are two kinds of commodities in the market, namely, 100 kg soybean, 1 yuan per kg, 100 kg wheat and 2 yuan per kg.
according to the theory of money quantity, py = MV
V is a constant in the short term, py = 100 * 1 + 100 * 2 = 300, So the money needed in the market is 300 yuan
but what happens if the central bank issues 300 yuan more money, because y can't increase suddenly in the short term, so it will inevitably lead to the rise of P, that is, the price will rise, and now 100 yuan can't buy 100 kg of soybeans, that is, the purchasing power of money will decline, This is the so-called inflation.
and the exchange rate is the foreign price of the currency,
for example:
the exchange rate of RMB to the US dollar is 7.8
that is, 1 US dollar can exchange for 7.8 RMB
why is this so? For example, 1 RMB can buy 1 pair of sports shoes in China
1 US dollar can buy 7.8 pairs of sports shoes in the United States, So it's time to exchange 1 US dollar for 7.8 RMB.
this is the so-called purchasing parity theory (Nordic school). You can have a look if you are interested
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