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Inflation
肖亮寰 曾泓 陈晓珍 梁琳敏 张雪楠
国金1105
Contents
6
Definition
Cause
Inflation
2
Influence
3
Chinese
performance
5
4
Worldwide
inflation storm
Solution
Definition
In mainstream economics, inflation is a
continuing rise in the general level of
prices.
Cause
1) The money supply is greater than the
actual demand for money.
2)cost-push inflation
3)demand-pull inflatiom
Influence
Positive:
a. Stimulate the imports
b. Be good for the debtors
Influence
Negative:
a. It erodes purchasing
power
b. Increase the
unemployment
Influence
Negative:
c. It's unfair on creditors and
savers, since the value of
money changes over time
Influence
Negative:
d. Enlarge the gulf between the rich and the poor
Solution
a. Improve the
interest
rate
to reduce the
money
supply
Solution
b. Adjust the economic structure and increase
the commodity supply
Solution
c. Strengthen the
supervision of finance
especially economy
department
Worldwide inflation storm
The crisis led to a large-scale depreciation
of the U.S. dollar, followed by a round of
price hikes for basic materials such as
agricultural products, energy and mineral
resources. World food prices had been
extremely low for a long time.
Chinese performance and measures
The inflation rate in China was last reported at
5.1 percent in November of 2010.
From 1994 until 2010, the average inflation rate
in China was 4.25 percent.
An historical high of 27.70 percent in October of
1994.
A record low of -2.20 percent in March of 1999.
Chinese performance and measures
For China, with its increasingly globalized
economy, some inflation is inevitable. To
prevent higher inflation risk, Chinese
Government has taken macro-control
measures such as tightening monetary
policy.
Thank you