Even if the central bank increasesCurrency issuance, but if theseCurrencyIf it does not really flow into the hands of consumers, then the stimulus effect on prices** is relatively limited. In November's data, although the amount of loans increased by trillions, personal loans increased by less than 300 billion, and most of them were long-term loans. Long-term loans, on the other hand, are mainly used to buy a house, which is not considered a consumption in statistical accounting. As a result, these new loans flow less into the hands of consumers. If there is a lack in the hands of consumersPurchasing power, naturally it will not be able to increase the demand for goods, and then drive prices**.
In addition, savings are also a factor that causes less money to flow into the hands of consumers. WhenEconomyWhen personal income growth slows, people are more inclined to save ahead because of concerns about future income. As can be seen in the data on the growth of deposits, total deposits increased by 25 percent in the previous 11 months65 trillion, while the growth rate of deposits reached 102%, which is higher than the growth rate of M2. It also means a lotCurrencyIt is saved, not consumed, and thus cannot drive prices**.
Even if the consumer has enough in their handsCurrencyIt does not mean that they will immediately increase their consumption, and there is also the possibility that they will choose to save instead of spending. WhenEconomyWhen growth and personal income growth slow, people may feel pessimistic about their future income, choosing to save more and spend less when they still have money. When everyone is more inclined to save than to spend, even if they have moreCurrency, nor can it drive prices**. Therefore, even if consumers have money in their hands, if they do not use this money for consumption, the ** effect on prices will be weakened.
AlthoughCurrencyAn additional amount has been issued, but if there is a surplus of goods, it still cannot push prices. For example, even if $1 is issuedCurrency, but if producedThe value of the commodityIf it is increased by two yuan, then consumers can only use 1 yuan to buy 2 yuan of goods, and what about the price?Therefore, in order to make the price **, in addition to increasingCurrency issuanceIn addition, it is also necessary to ensure that the goods are ** withCurrency** Balance. If the central bank is desperate to issue a large amountCurrency, while it can drive prices**, it can also cause other problems, thereforeCurrency issuanceIt must be carefully controlled.
To sum up, in addition to the additional issuanceCurrencyIn addition to factors such as less inflow into consumers, low willingness to consume and less currency issuance, there are other reasons that make it difficult to sell prices. For example, inEconomyDuring the period of structural adjustment, overcapacity led to an imbalance between supply and demand, and emerging industries developed rapidly, such as fierce competition in the Internet field. In addition, the international market ** volatility, foreign exchangeExchange rateChanges and social stability in the country also have an impact on prices. Therefore, to comprehensively analyze the causes of prices**, it is necessary to consider comprehensivelyMacroeconomicsEconomyPolicy, market supply and demand and other factors.
Despite our November'scpiThere is a negative growth, which makes people interested inEconomyTowards the generation of doubts, but fromCurrencyJudging from the relationship between the increase in issuance and the decline in prices, there are still some reasons that can explain this phenomenon. First, money flows less into consumers, personal loans are limited in new loans, mostly long-term loans, and home purchases are not considered consumption. Second, even if consumers have money in their hands, it doesn't necessarily increase consumption, due toEconomyAs personal income growth slows, people may be more inclined to save than to spend. In addition, the amount of money issued is small, which cannot meet the demand for prices. In addition to that,EconomyFactors such as structural adjustments and fluctuations in international markets will also have an impact on prices.
Overall,CurrencyThe relationship between additional issuance and prices is not a simple causal relationship. InCurrencyIn the process of issuance, it is also necessary to comprehensively consider market supply and demandEconomyPolicy regulation, production capacity adjustment and other factors to maintain price stability andEconomysustainable development. In the future, it is necessary to continue to strengthen supervision and regulation by relevant departments such as the central bank to ensure thatCurrencypolicy effectiveness and promotionEconomySmooth operation.