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Combined with macroeconomic theory, this paper expounds the understanding of current inflation in China.
In September of 20 10, CPI rose by 3.6% year-on-year, reaching a 23-month high. From 20 10 to 10, China's consumer price index reached 4.4%? . "You can run without winning Liu Xiang, but do you have to run? Behind this sentence is the suspicion and worry about inflation, which has always been a concern not only for economists but also for the general public. As for the harm of inflation, Keynes also clearly pointed out that nothing is easier than destroying the foundation of a country by destroying its currency. Therefore, China has paid full attention to this round of inflation, and a series of measures introduced at present also show that controlling inflation and stabilizing prices are the primary tasks of the government's macro-control. ?

However, what caused the current high inflation? ?

Western economists believe that there are four main types:? Demand-driven, cost-driven, mixed-driven and structural inflation. In addition, in an open economic environment, is the international transmission of inflation also a country (region)? An important cause of inflation. From the analysis of the current situation of inflation in China, the main reasons for the sustained growth of inflation are:

First, agricultural products are in short supply. At present, there are many price increases of agricultural products and oil. The price increase of domestic oil is caused by the price increase of international oil, and the price increase of agricultural products is partly caused by the rising labor cost. However, judging from the huge profits of vegetables, pig industry and edible oil, the price increase of agricultural products is mainly caused by the shortage in the later period. ?

Second, the reform of RMB exchange rate is too slow, which makes international hot money expect RMB appreciation, which leads to a large amount of foreign capital flowing into China to bet on RMB appreciation. Every day that China's exchange rate is delayed is equivalent to letting more hot money flow into China. And these hot money are still increasing.

This led to the skyrocketing real estate, and then the government cracked down on the housing market, and then hot money entered the stock market, which made the stock market skyrocket. Then the China government tried to crack down on the stock market, and then forced the hot money to flow to the material futures market and began to speculate at high prices. ? It is inevitable that pork and eggs will reach historical high prices, and the overall price increase will continue. ?

I think there are some reasons why the high inflation in China is still widening the gap between the rich and the poor in China. According to statistics, China has become the country with the second largest number of billionaires, second only to the United States. China's GDP also ranks second in the world? But the ranking of GDP per capita in the world is 100. There are more and more rich people, which leads to the increase of idle funds, and also leads these rich people to speculate in real estate and stocks. This will inevitably lead to the current high inflation phenomenon. ?

Fourthly, I think the current high inflation in China is closely related to the economic policy of the China administration. In 2009, in response to the global financial turmoil, the China government adopted a series of measures to stimulate the economy, and even launched a policy of 4 trillion yuan to stimulate domestic demand. Of course, in the short term, China has weakened the impact of the crisis to some extent. But like a double-edged sword, the side effects begin to appear, the most obvious being the current high inflation risk. Second, in the face of high housing prices, the government first suppressed housing prices, suppressed the stock market, and rectified Shanxi coal enterprises. The number of coal enterprises will be reduced from the current 2,200 to about 100, and small coal mines will be completely terminated. It is a foregone conclusion that the coal boss will withdraw from the historical stage. These measures have won the support of the broad masses of the people. It is also urgent, but these have caused some international hot money, and social idle funds are nowhere to be used. This led to this year's "tease you", "garlic you malicious", "ginger your army" and "sugar emperor" The emergence of the phenomenon of "grabbing cotton". These phenomena are very orderly and are the result of constant speculation of these "spare money". ?

What should the government do in the face of high inflation risk? What should we do? ? In the face of inflation, the China government spared no effort to curb inflation. For example, raising interest rates and reserve ratio for many times has greatly reduced the circulation of social money and eased inflationary pressure to a great extent. Of course, the China-China administration's response to the current policy goes far beyond this. ?

But what I want to say is that the government can't suppress prices blindly, and controlling inflation needs to start from the root causes. If we only control inflation from superficial phenomena, such as controlling the rise of food prices and garlic prices, trying to control prices through administrative means will not only solve the problem of inflation, but will make it more serious. Because inflation in China is a monetary problem, it must be solved by the central bank's monetary policy, not by the government's administrative means to control prices. ?

In addition, we should let those idle funds in society have their own uses, and actively adopt policies to guide these funds to be used for the right purposes, rather than taking passive measures to deal with the harm caused by these funds. ?

What should we do in the face of inflation? In reality, many people buy gold crazily to deal with inflation, so as to preserve their value. But what it brings is an increase in the price of gold. As Professor Lang Xianping said, gold is not used to fight inflation, and the current price increase of gold is caused by people's loss of confidence in the currency. So I think we should be cautious about this kind of behavior. I think we should still trust our government and its policies. It should also respond to government policies. * * * Get through this together.