1 thought on “What will have an impact of currency super issuance? Intersection Scholars who understand economics help!”
Katie
Although China's currency over issuance has always existed, and in recent years, China Currency Excellence has ranked first in major global economies, but at the same time, it has to admit that so far, there has Inflation, that is, there is no malignant inflation that occurs out of control. While maintaining high economic development for more than two decades, it can effectively control inflation, which is a economic miracle. Of course, it should also be seen that long -term currency super issuance also brings many negative consequences to China's economic and social development. First of all, it caused more serious inflation and social problems during a period of time. Not to mention that the inflation in the Mainland since the financial tsunami has remembered. Due to statistical defects, although the inflation rates officially announced in 2010 and 2011 were only 3.3%and 5.4%in 2011, the monthly increase of the prices of many agricultural and sideline products has reached double digits. Complaints, called bitterness. The inflation fire is not exhausted , the serious asset bubble is still a hidden danger to this day. In early 2009, under the promotion of extremely loose monetary policy, a large amount of monetary funds in the Mainland began to flood to the market. House prices, stock markets, and even art markets turned around in a short time, so that to the end of the end of the year, the well -known American magazine "Forbes" The real estate bubble of China was rated as the seven major financial bubble runner -up in 2009. The reason is that the loose monetary policy has largely contributed to the virtual high of real estate and stock prices. There are even foreign public opinion that China's property market bubble is a thousand times that of Dubai. third, impact the country's normal economic operation order and macro regulation. From 2009 to 2010, a large amount of credit funds in the Mainland flowed into the property market and stock market, which not only separated from the national macroeconomic goals, but also seriously affected the operation of the national economy. On the one hand, enterprises and fields related to the national economic transformation, industrial upgrading, technological innovation or technological transformation failed to get the support that the monetary policy should have; on the other hand, a large amount of credit funds released by banks have flowed to a severe bubble component with severe bubble components The stock market and the property market make the high fever and the property price of non -refund became the public's indignation, so that the central government continues to suppress the property market. A hidden dangers of asset bubbles Fourth, distorted income distribution, losing the enthusiasm of people's entrepreneurship. The inflation caused by currency over issuance can cause residents to depreciate the currency with the currency, so the currency super issuance first distorted the distribution relationship between the government and the people at the macro level. According to statistics, the actual value of 100 yuan in 1980 has dropped to about 15 yuan today. At the micro level, the asset bubbles caused by currency over issuance stimulate the speculative activities of the market. Those financial and real estate industries or some people in the stock market and the real estate market are near the water tower, becoming the most direct beneficiaries. The wealth of stock speculation and speculation has impacted many workers and entrepreneurs who are hard -working, and seriously damage the labor enthusiasm and enthusiasm of all classes of society and creating enthusiasm. Fifth, seriously affect the government's power. A large amount of monetary funds stimulate the bubble economy, which has led to the continuous failure of the central government's property market regulation and control policies, which has seriously damaged the central government's power and prestige. In recent years, any measures for regulating the property market in the Mainland have been repeatedly considered a precursor to rise in property prices. The large amount of currency over issuance has also lagged behind the transformation of extensive economic growth to a certain extent, and even promoted the predatory development of resources, causing great destruction of the environment and ecology. The currency over issuance also triggered many corruption problems. These are directly related to the negative impact on government credit and prestige.
Although China's currency over issuance has always existed, and in recent years, China Currency Excellence has ranked first in major global economies, but at the same time, it has to admit that so far, there has Inflation, that is, there is no malignant inflation that occurs out of control. While maintaining high economic development for more than two decades, it can effectively control inflation, which is a economic miracle. Of course, it should also be seen that long -term currency super issuance also brings many negative consequences to China's economic and social development.
First of all, it caused more serious inflation and social problems during a period of time. Not to mention that the inflation in the Mainland since the financial tsunami has remembered. Due to statistical defects, although the inflation rates officially announced in 2010 and 2011 were only 3.3%and 5.4%in 2011, the monthly increase of the prices of many agricultural and sideline products has reached double digits. Complaints, called bitterness.
The inflation fire is not exhausted
, the serious asset bubble is still a hidden danger to this day. In early 2009, under the promotion of extremely loose monetary policy, a large amount of monetary funds in the Mainland began to flood to the market. House prices, stock markets, and even art markets turned around in a short time, so that to the end of the end of the year, the well -known American magazine "Forbes" The real estate bubble of China was rated as the seven major financial bubble runner -up in 2009. The reason is that the loose monetary policy has largely contributed to the virtual high of real estate and stock prices. There are even foreign public opinion that China's property market bubble is a thousand times that of Dubai.
third, impact the country's normal economic operation order and macro regulation. From 2009 to 2010, a large amount of credit funds in the Mainland flowed into the property market and stock market, which not only separated from the national macroeconomic goals, but also seriously affected the operation of the national economy. On the one hand, enterprises and fields related to the national economic transformation, industrial upgrading, technological innovation or technological transformation failed to get the support that the monetary policy should have; on the other hand, a large amount of credit funds released by banks have flowed to a severe bubble component with severe bubble components The stock market and the property market make the high fever and the property price of non -refund became the public's indignation, so that the central government continues to suppress the property market.
A hidden dangers of asset bubbles
Fourth, distorted income distribution, losing the enthusiasm of people's entrepreneurship.
The inflation caused by currency over issuance can cause residents to depreciate the currency with the currency, so the currency super issuance first distorted the distribution relationship between the government and the people at the macro level. According to statistics, the actual value of 100 yuan in 1980 has dropped to about 15 yuan today. At the micro level, the asset bubbles caused by currency over issuance stimulate the speculative activities of the market. Those financial and real estate industries or some people in the stock market and the real estate market are near the water tower, becoming the most direct beneficiaries. The wealth of stock speculation and speculation has impacted many workers and entrepreneurs who are hard -working, and seriously damage the labor enthusiasm and enthusiasm of all classes of society and creating enthusiasm.
Fifth, seriously affect the government's power. A large amount of monetary funds stimulate the bubble economy, which has led to the continuous failure of the central government's property market regulation and control policies, which has seriously damaged the central government's power and prestige. In recent years, any measures for regulating the property market in the Mainland have been repeatedly considered a precursor to rise in property prices. The large amount of currency over issuance has also lagged behind the transformation of extensive economic growth to a certain extent, and even promoted the predatory development of resources, causing great destruction of the environment and ecology. The currency over issuance also triggered many corruption problems. These are directly related to the negative impact on government credit and prestige.