4 thoughts on “What impact of analyzing inflation (or shrinking) on the economy and society?”
Margaret
Deflation is a financial crisis. Like the continuous rise in prices caused by inflation and the depreciation of the currency, it will affect people's daily life. Fragrance tightening is also an economic problem that is closely related to everyone. Deflation refers to the process of the total level of social price, that is, the continuous decline in the level of commodities and labor prices, and the continuous appreciation of monetary value. In some major developed countries, such as Japan, the problem of shrinkage has become one of the most important factor affecting its economic recovery. The characteristics: ■ The performance of currency tightening
is opposite to inflation. The tightening of currency means that consumers' purchasing power is increased, but continuing will lead to increasing debt burden. , Consumers' negative consumption, the national economy may fall into the severe situation of decline in price and economic recession, and the cycle of vicious circulation. The dangers of shrinking are: The price has declined, but it has increased the liabilities of individuals and enterprises secretly, because the actual value of holding assets has shrunk, and mortgage loans to banks have not decreased. For example, people's mortgage purchases may make the buyers the value of real estate, far lower than their debt.
The effects of inflation and currency tightening comparison are reflected in the following aspects:
This Inflation effect
-currency depreciation; price rise rising; price increases rising ; Expected income is optimistic; economic overheating; decreased unemployment rate; but too fast expansion is inevitable tightening.
The curriculum tightening effects ——— corporate profits decrease; personal expected income decrease; macroeconomic pessimistic decline; decline in prices; rising currency value; chaotic financial order.
This has had a tightening in history. The most typical is the world economy from 1929 to 1933.
■ Why does it occur in deflation
Compared with inflation, contraction is a problem that makes economic policies a headache more difficult because it is more difficult to manage.
The reasons for the tightening of the currency mainly include some aspects:
Product supply is greater than demand, and a large number of products cannot be sold, causing currency tightening. The economy of some countries has not fundamentally got rid of excess production constraints, so that once problems occur, they will face the risk of currency tightening.
. The second is insufficient effective demand. Affected by the negative factors such as the downturn in the stock market and the reduction in investment, the consumer price index has decreased compared with the past, which is also an important factor in the tightening of currency. Insufficient demand and excess production are the cause and effect. Just as a patient with a stomach disease, saying that he is "indigestion" (insufficient demand) or "eating too much" (excess supply) is the same thing. Third, as the U.S., as the global economic locomotive, the economy has always recovered. This is undoubtedly worse for many countries and regions that rely on the US economy. At the same time, it has also prompted the decline in the currency of these countries.
The damage caused by deflation to the global economy is far greater than inflation. Once the former and huge liabilities are combined, it will inevitably cause serious fiscal problems, and the huge fiscal problems will exacerbate currency tightening. So as to put the shadow of the weak world economic recovery. 2 " If inflation INFLATION
The issuance of banknotes exceeds the currency depreciation and price increase caused by the amount of currency required in the commodity circulation. A social and economic phenomenon unique to bank currency circulation conditions. The reason banknotes are a pure currency symbol, without value, but the function of performing circulation means instead of metal currency; The amount of currency is limited. If the amount of banknote issuance exceeds the amount of metal currency required in circulation, banknotes will depreciate and prices will rise. Therefore, the depreciation and price increase caused by excessive banknotes will cause inflation to cause inflation. Direct reason.
The characteristics ① The banknotes depreciated sharply due to excessive issuance. When the amount of metal currency required in circulation has been determined, the more banknotes are issued. The less volume, the greater the depreciation of the banknotes. The depreciation of banknotes, that is, the calculation formula of the depreciation rate of banknotes is: banknotes depreciation rate = (1 -) × 100 %. For example, a country needed in a country in a period of circulation in a period of time needed The amount of currency is 10 billion yuan, and the actual issuance of banknotes is 20 billion yuan. The calculation formula of the increase rate is: the price increase rate = ( - 1) × 100 %, for example, the amount of metal currency required in a period of a country in a country is 10 billion yuan, the actual issuance of banknotes is 20 billion yuan, the price increase rate = ( - 1) × 100 % = 100 %. Type ① Requirement pull -type inflation. Over excessive demand exceeds the total supply of goods at the existing price level, causing generally rising prices. Growth manifests that the continuous currency supply caused by investment expansion and consumption expansion exceeds the increase in the supply of social goods, so it is also called excessive demand for inflation. . The factors that cause costs are increased, and the increase in material consumption, the second is that the increase in wages exceeds the growth of labor productivity. ③ structural inflation. Price caused by the imbalance of the social and economic departments generally rose. The Chinese family is more prominent. It is mainly manifested in three situations: First, some domestic departments, and even some large key products in the country are not available, which causes insufficient supply, which leads to the rise in prices. Price, so that the general price level continues to rise; second, the imbalance of labor productivity development of various domestic departments has led to the increase in monetary wages of departments with a faster increase in labor productivity. The general price level is generally rising; the third is the price of the open economic sector, when the international market price level tends to increase, it will spread to the non -open -scale economic department, which will lead to the rise in general prices. Expansion. As the price of input products rises The general rise in domestic prices. This type generally occurs in the case of worldwide inflation, and spreads internationally through international trade, multinational companies, and open economic departments. ⑤ Inhibitory inflation. In the market, there is a total supply that is less than the total demand or the structured imbalance of supply and demand, and the state can mandatoryly inhibit the stability of the total price level by controlling the method of controlling prices and commodity quotas. No inflation phenomenon.
In consequences, from different perspectives, the impact of inflation on the development of the national economy in one country is: ① the impact on economic development. The rise in the price of inflation makes the price signal distortion, which can easily make producers mistakenly enter the production of production, lead to the blind development of production, cause the abnormal development of the national economy, cause the industrial structure and economic structure to malformation, which will lead to the entire national economy Percent disorders. When the economic structural malformation caused by inflation needs to be corrected, the state will inevitably take various measures to inhibit inflation. As a result, it will lead to a significant decline in production and construction. Stable and coordinated development. ② The impact on income distribution. The depreciation of the currency of inflation has continued to decline in the living standards of some low -income residents, making it difficult for the living standards of residents to improve. When inflation continues, it may cause social turmoil and restlessness. ③ The impact on foreign economic relations. Inflation will reduce the export competition of domestic products, cause the outflow of gold foreign exchange reserves, and depreciate the exchange rate.
The measures to inhibit inflation The main measures for western countries to inhibit inflation are generally deflation and income policies. Deflation is a part of excessive banknotes from the cage from circulation. The usually adopted method is: ① increase taxes. ② Improve the discount rate and reduce the total credit. Through these methods to inhibit overall demand and get close to the total supply, thereby inhibiting inflation. The revenue policy is mainly to inhibit inflation by restricting the rise of wages and prices. The main methods adopted are: ① The price guidance line is promulgated. ② to stimulate enterprises to implement low prices with tax reduction and other means. ③ mandatory control or management of wages and prices. In the process of economic development in Western countries, the adoption of these measures has suppressed inflation to a certain extent; however, because the purpose of measures taken by capitalist countries is not to fundamentally suppress or eliminate inflation, but only use it as right as right Inflation is a means of regulating national monopoly capitalism; therefore, its results not only cannot really suppress or eliminate inflation, but further exacerbate inflation.
1. Small enterprises are difficult to operate. Because the raw materials of many products have increased, labor costs are increased (wages will increase with living necessities such as food), and product prices cannot be increased. In the case, the investment of the enterprise must be large to support the operation. Small companies with tight funds and low credit are likely to be unable to continue bankruptcy.
2, improved employment pressure. After the bankruptcy, these unemployed people will move the intensification of labor competition, which will reduce wages.
3, exports decreased, and the exchange rate rose. For my country, inflation has a greater impact on export -oriented enterprises, because in addition to the above two factors, there are also the third factor, namely the appreciation of the local currency. This will inevitably drive the price of export products to rise and reduce exports. You may see the recent situation of the Pearl River Delta. (Our company died last week because of the reason I said above.) The two suppliers were killed), which also promoted unemployment at the same time.
is also very important. This influence on people of all strata is different:
1 has the greatest impact on people with low income, because these people are basically basically people It is survived by low micro wages, and there is almost no surplus, and the price rises. Most of these people's income may be spent on food and daily necessities. Although the salary may increase slightly, it is difficult to say rise. Therefore, it is worse than that of living water products.
2, it is secondary to small manufacturers, but still has a great impact. For example, as long as a small business owner invests 100,000 per year, he can get a profit of 20%. The cost rises by 7%, the raw material rises and the total cost rises by 5%. If other costs remain unchanged, the profit of the same number of products will be reduced to 8%. The funds invested are no longer 100,000 but 112,000, so at this time, investing in the same scale of the money required for the same scale, and the production that has been invested also needs to turn more than the original mobile capital, which will eliminate some companies in itself.
3, which has less influence on large manufacturers or group -type enterprises without impact. This kind of powerful capital enterprises can completely defeat other small competitors by reducing prices and reducing profits. Because, as Adam Smith said, "money can have money." Big business owners can make up for their losses in profit reduction through their increase in sales.
4, which is beneficial to merchants. Large sellers can speculate the goods through their asymmetric and sales channels. This is easier to do when the price is expensive. And due to the rise in prices, manufacturers are more difficult to sell products. So at this time, the pricing power of the business class will be greater.
The cost of the two disadvantages of the two disadvantages leather shoes This -closing the unemployment rate rising enterprises decreased by corporate profits
00:00 / 04:1670% Shortcut Key Key Explanation: Play / Passing ESC: Exit full screen ↑: Volume increase 10% ↓: Astrimed by 10% →: Single fast forward 5 seconds ←: Press a single fast retreat for 5 seconds, hold down and hold it. Here you can drag no longer appear in the player settings to reopen the small window shortcut key description
Deflation is a financial crisis. Like the continuous rise in prices caused by inflation and the depreciation of the currency, it will affect people's daily life. Fragrance tightening is also an economic problem that is closely related to everyone. Deflation refers to the process of the total level of social price, that is, the continuous decline in the level of commodities and labor prices, and the continuous appreciation of monetary value. In some major developed countries, such as Japan, the problem of shrinkage has become one of the most important factor affecting its economic recovery.
The characteristics:
■ The performance of currency tightening
is opposite to inflation. The tightening of currency means that consumers' purchasing power is increased, but continuing will lead to increasing debt burden. , Consumers' negative consumption, the national economy may fall into the severe situation of decline in price and economic recession, and the cycle of vicious circulation. The dangers of shrinking are: The price has declined, but it has increased the liabilities of individuals and enterprises secretly, because the actual value of holding assets has shrunk, and mortgage loans to banks have not decreased. For example, people's mortgage purchases may make the buyers the value of real estate, far lower than their debt.
The effects of inflation and currency tightening comparison are reflected in the following aspects:
This Inflation effect
-currency depreciation; price rise rising; price increases rising ; Expected income is optimistic; economic overheating; decreased unemployment rate; but too fast expansion is inevitable tightening.
The curriculum tightening effects ——— corporate profits decrease; personal expected income decrease; macroeconomic pessimistic decline; decline in prices; rising currency value; chaotic financial order.
This has had a tightening in history. The most typical is the world economy from 1929 to 1933.
■ Why does it occur in deflation
Compared with inflation, contraction is a problem that makes economic policies a headache more difficult because it is more difficult to manage.
The reasons for the tightening of the currency mainly include some aspects:
Product supply is greater than demand, and a large number of products cannot be sold, causing currency tightening. The economy of some countries has not fundamentally got rid of excess production constraints, so that once problems occur, they will face the risk of currency tightening.
. The second is insufficient effective demand. Affected by the negative factors such as the downturn in the stock market and the reduction in investment, the consumer price index has decreased compared with the past, which is also an important factor in the tightening of currency. Insufficient demand and excess production are the cause and effect. Just as a patient with a stomach disease, saying that he is "indigestion" (insufficient demand) or "eating too much" (excess supply) is the same thing. Third, as the U.S., as the global economic locomotive, the economy has always recovered. This is undoubtedly worse for many countries and regions that rely on the US economy. At the same time, it has also prompted the decline in the currency of these countries.
The damage caused by deflation to the global economy is far greater than inflation. Once the former and huge liabilities are combined, it will inevitably cause serious fiscal problems, and the huge fiscal problems will exacerbate currency tightening. So as to put the shadow of the weak world economic recovery.
2 "
If inflation
INFLATION
The issuance of banknotes exceeds the currency depreciation and price increase caused by the amount of currency required in the commodity circulation. A social and economic phenomenon unique to bank currency circulation conditions.
The reason banknotes are a pure currency symbol, without value, but the function of performing circulation means instead of metal currency; The amount of currency is limited. If the amount of banknote issuance exceeds the amount of metal currency required in circulation, banknotes will depreciate and prices will rise. Therefore, the depreciation and price increase caused by excessive banknotes will cause inflation to cause inflation. Direct reason.
The characteristics ① The banknotes depreciated sharply due to excessive issuance. When the amount of metal currency required in circulation has been determined, the more banknotes are issued. The less volume, the greater the depreciation of the banknotes. The depreciation of banknotes, that is, the calculation formula of the depreciation rate of banknotes is: banknotes depreciation rate = (1 -) × 100 %. For example, a country needed in a country in a period of circulation in a period of time needed The amount of currency is 10 billion yuan, and the actual issuance of banknotes is 20 billion yuan. The calculation formula of the increase rate is: the price increase rate = ( - 1) × 100 %, for example, the amount of metal currency required in a period of a country in a country is 10 billion yuan, the actual issuance of banknotes is 20 billion yuan, the price increase rate = ( - 1) × 100 % = 100 %.
Type ① Requirement pull -type inflation. Over excessive demand exceeds the total supply of goods at the existing price level, causing generally rising prices. Growth manifests that the continuous currency supply caused by investment expansion and consumption expansion exceeds the increase in the supply of social goods, so it is also called excessive demand for inflation. . The factors that cause costs are increased, and the increase in material consumption, the second is that the increase in wages exceeds the growth of labor productivity. ③ structural inflation. Price caused by the imbalance of the social and economic departments generally rose. The Chinese family is more prominent. It is mainly manifested in three situations: First, some domestic departments, and even some large key products in the country are not available, which causes insufficient supply, which leads to the rise in prices. Price, so that the general price level continues to rise; second, the imbalance of labor productivity development of various domestic departments has led to the increase in monetary wages of departments with a faster increase in labor productivity. The general price level is generally rising; the third is the price of the open economic sector, when the international market price level tends to increase, it will spread to the non -open -scale economic department, which will lead to the rise in general prices. Expansion. As the price of input products rises The general rise in domestic prices. This type generally occurs in the case of worldwide inflation, and spreads internationally through international trade, multinational companies, and open economic departments. ⑤ Inhibitory inflation. In the market, there is a total supply that is less than the total demand or the structured imbalance of supply and demand, and the state can mandatoryly inhibit the stability of the total price level by controlling the method of controlling prices and commodity quotas. No inflation phenomenon.
In consequences, from different perspectives, the impact of inflation on the development of the national economy in one country is: ① the impact on economic development. The rise in the price of inflation makes the price signal distortion, which can easily make producers mistakenly enter the production of production, lead to the blind development of production, cause the abnormal development of the national economy, cause the industrial structure and economic structure to malformation, which will lead to the entire national economy Percent disorders. When the economic structural malformation caused by inflation needs to be corrected, the state will inevitably take various measures to inhibit inflation. As a result, it will lead to a significant decline in production and construction. Stable and coordinated development. ② The impact on income distribution. The depreciation of the currency of inflation has continued to decline in the living standards of some low -income residents, making it difficult for the living standards of residents to improve. When inflation continues, it may cause social turmoil and restlessness. ③ The impact on foreign economic relations. Inflation will reduce the export competition of domestic products, cause the outflow of gold foreign exchange reserves, and depreciate the exchange rate.
The measures to inhibit inflation
The main measures for western countries to inhibit inflation are generally deflation and income policies. Deflation is a part of excessive banknotes from the cage from circulation. The usually adopted method is: ① increase taxes. ② Improve the discount rate and reduce the total credit. Through these methods to inhibit overall demand and get close to the total supply, thereby inhibiting inflation. The revenue policy is mainly to inhibit inflation by restricting the rise of wages and prices. The main methods adopted are:
① The price guidance line is promulgated.
② to stimulate enterprises to implement low prices with tax reduction and other means.
③ mandatory control or management of wages and prices. In the process of economic development in Western countries, the adoption of these measures has suppressed inflation to a certain extent; however, because the purpose of measures taken by capitalist countries is not to fundamentally suppress or eliminate inflation, but only use it as right as right Inflation is a means of regulating national monopoly capitalism; therefore, its results not only cannot really suppress or eliminate inflation, but further exacerbate inflation.
1. Small enterprises are difficult to operate. Because the raw materials of many products have increased, labor costs are increased (wages will increase with living necessities such as food), and product prices cannot be increased. In the case, the investment of the enterprise must be large to support the operation. Small companies with tight funds and low credit are likely to be unable to continue bankruptcy.
2, improved employment pressure. After the bankruptcy, these unemployed people will move the intensification of labor competition, which will reduce wages.
3, exports decreased, and the exchange rate rose. For my country, inflation has a greater impact on export -oriented enterprises, because in addition to the above two factors, there are also the third factor, namely the appreciation of the local currency. This will inevitably drive the price of export products to rise and reduce exports. You may see the recent situation of the Pearl River Delta. (Our company died last week because of the reason I said above.) The two suppliers were killed), which also promoted unemployment at the same time.
is also very important. This influence on people of all strata is different:
1 has the greatest impact on people with low income, because these people are basically basically people It is survived by low micro wages, and there is almost no surplus, and the price rises. Most of these people's income may be spent on food and daily necessities. Although the salary may increase slightly, it is difficult to say rise. Therefore, it is worse than that of living water products.
2, it is secondary to small manufacturers, but still has a great impact. For example, as long as a small business owner invests 100,000 per year, he can get a profit of 20%. The cost rises by 7%, the raw material rises and the total cost rises by 5%. If other costs remain unchanged, the profit of the same number of products will be reduced to 8%. The funds invested are no longer 100,000 but 112,000, so at this time, investing in the same scale of the money required for the same scale, and the production that has been invested also needs to turn more than the original mobile capital, which will eliminate some companies in itself.
3, which has less influence on large manufacturers or group -type enterprises without impact. This kind of powerful capital enterprises can completely defeat other small competitors by reducing prices and reducing profits. Because, as Adam Smith said, "money can have money." Big business owners can make up for their losses in profit reduction through their increase in sales.
4, which is beneficial to merchants. Large sellers can speculate the goods through their asymmetric and sales channels. This is easier to do when the price is expensive. And due to the rise in prices, manufacturers are more difficult to sell products. So at this time, the pricing power of the business class will be greater.
The cost of the two disadvantages of the two disadvantages leather shoes
This -closing the unemployment rate rising enterprises decreased by corporate profits
00:00 / 04:1670% Shortcut Key Key Explanation: Play / Passing ESC: Exit full screen ↑: Volume increase 10% ↓: Astrimed by 10% →: Single fast forward 5 seconds ←: Press a single fast retreat for 5 seconds, hold down and hold it. Here you can drag no longer appear in the player settings to reopen the small window shortcut key description