inflation 肖亮寰 曾泓 陈晓珍 梁琳敏 张雪楠 国金 1105. cause influencesolution 6 3 25...
TRANSCRIPT
Cause
Influence Solution
6
3
2 5
4
Inflation
Definition
Worldwide inflation storm
Chinese performance
ContentsContents
In mainstream economics, inflation is a continuing rise in the general level of prices.
DefinitionDefinition
CauseCause
1) The money supply is greater than the actual demand for money.2)cost-push inflation3)demand-pull inflatiom
Positive:Positive:
a. Stimulate the importsa. Stimulate the importsb. Be good for the debtorsb. Be good for the debtors
InfluenceInfluence
Negative:Negative:
a. a. It erodes purchasing It erodes purchasing powerpower
b. Increase the b. Increase the unemploymentunemployment
InfluenceInfluence
Negative:Negative:
cc. It's unfair on creditors and . It's unfair on creditors and savers, since the value of savers, since the value of money changes over timemoney changes over time
InfluenceInfluence
Negative:Negative:
d. d. Enlarge the gulf between the rich and the poorEnlarge the gulf between the rich and the poor
InfluenceInfluence
a. a. ImproveImprove thethe
interest interest raterate
toto reducereduce thethe
money money
supplysupply
SolutionSolution
b. b. Adjust the economic structure and increase Adjust the economic structure and increase the commodity supplythe commodity supply
SolutionSolution
c. c. Strengthen the Strengthen the
supervision of finance supervision of finance
especially economy especially economy
departmentdepartment
SolutionSolution
The crisis led to a large-scale depreciation oThe crisis led to a large-scale depreciation o
f the U.S. dollar, followed by a round of pricf the U.S. dollar, followed by a round of pric
e hikes for basic materials such as agriculture hikes for basic materials such as agricultur
al products, energy and mineral resources. al products, energy and mineral resources.
World food prices had been extremely low fWorld food prices had been extremely low f
or a long time.or a long time.
Worldwide inflation stormWorldwide inflation storm
Chinese performance and measuresChinese performance and measures
The inflation rate in China was last reported at 5.The inflation rate in China was last reported at 5.1 percent in November of 2010. 1 percent in November of 2010. From 1994 until 2010, the average inflation rate iFrom 1994 until 2010, the average inflation rate in China was 4.25 percent.n China was 4.25 percent.An historical high of 27.70 percent in October of An historical high of 27.70 percent in October of 1994.1994.A record low of -2.20 percent in March of 1999.A record low of -2.20 percent in March of 1999.
Chinese performance and measuresChinese performance and measures
For China, with its increasingly globalized For China, with its increasingly globalized economy, some inflation is inevitable. To economy, some inflation is inevitable. To prevent higher inflation risk, Chinese prevent higher inflation risk, Chinese Government has taken macro-control Government has taken macro-control measures such as tightening monetary measures such as tightening monetary policy.policy.