The currency was issued by 22 trillion yuan, and inflation disappeared over the weekend!CPI is down again.
Analysis of the causes of the continued decline in the consumer price index.
In November, the national consumer price index fell by 05%, which is already the second quarter of decline, and the largest decline in recent years. November's magnitude was earlier than in July and October, down 03% and 02%, which raises concerns about the future of the United States.
One reason for this is the rapid growth of the renminbi in recent years. From the end of last year to the end of October, M2 grew by 22 trillion, far exceeding the 20% growth rate. Theoretically, issuing money should be able to promote inflation. Where does all that money go?Why didn't it cause inflation?
Another reason is the downturn in the market. The outbreak of influenza has greatly affected the demand of the market, both around the world and in the country. Many industries and enterprises have suffered heavy blows, and people's enthusiasm for consumption has also been suppressed. This creates a decrease in demand, which in turn inhibits the rise of **.
The crisis of inflation and deflation.
Inflation and deflation are two different economic phenomena, and both have a negative effect on a country's economic development. Moderate inflation is conducive to promoting economic development and promoting investment and consumption by enterprises. However, if inflation is too high, it will affect consumption power, affect the company's profitability, and also bring instability to investment and economic operation. Deflation, on the other hand, is much more complicated, as it not only worries about the economic downturn, but also poses a great test to the monetary policy of the banks.
Although the current situation does not mean deflation, we still need to be vigilant about it. The consumer price index for November showed that although there was an overall decline, the rate of decline was relatively slow, with an overall increase of only 03%。In this case, if the ** continues to be low or declines, it will cause further cooling of consumer demand. This will make consumers more cautious and reluctant to spend on large scales, which in turn will put pressure on the economic recovery.
Expand the supply of money and promote economic development.
In the current economic environment, monetary policy has gradually become an important way of regulation and control. **By expanding the supply of funds, banks can effectively stimulate economic development, employment, consumption and economic development. However, the issuance of currency also comes with certain risks and challenges.
Even with the 22 trillion dollars added, it did not really fall into the hands of ordinary people, as people expected. Due to the lack of liquidity, the pace of capital inflow into the real economy has been slow, resulting in a small pull effect on the economy. In addition, when business and consumer confidence gradually recovers, there is a great opportunity to put money into the capital market, which will make the economy more uncertain.
To solve this problem, it is necessary to combine monetary policy, fiscal policy, and structural reform policy, enhance the effective liquidity of capital, enhance the supporting role of the real economy, and promote the healthy development of the national economy. In addition, it is also necessary to speed up reform and opening up, raise the degree of supply-side structural adjustment, fully mobilize the vitality of the market and the needs of consumption, and lay a solid foundation for long-term development.
My thoughts and insights.
As an editor and writer of personal information**, I keep abreast of the country's economic situation and related policy changes. In recent years, the issue of "currency issuance" and "inflation" has become the focus of social attention, and the current "** decline" problem has also caused the public to question the prospects of China's economic development.
The author believes that through the issuance of a new monetary policy, it can bring certain financial pressure to the development of China's real economy, but this is not a cure. In addition, we should also pay attention to the transformation of China's economy and the transformation of market demand. In order to enhance the competitiveness of enterprises and give full play to the vitality of the market, we must persist in deepening reform and deepening structural reform as the basis and promote the enhancement of enterprise competitiveness and the vitality of the market.
In addition, we should also pay more attention to the level of economic literacy of the people, enhance our ability to prevent financial risks, achieve rational consumption, and prevent blind speculation and borrowing. In order to maintain long-term, healthy, and sustainable economic development in our country, it is necessary to give play to the role of the market, strengthen supervision, strengthen supervision over the market, and guard against and control risks.
Overall, the current domestic and international situation is very complex, and there are many challenges. However, we must not rely too much on monetary policy, but should promote China's development as a whole and enhance China's vitality and sustainable development capacity. Only in this way will China's economy, society, and people's livelihood achieve long-term development.