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Digital money leads to inflation

Publish: 2021-05-19 23:04:46
1. 1. Its quantity is too small compared with the currency in circulation; 2. Digital currency is generally not used to buy goods. So digital money will not inflate.
2. Inflation is the price rise that causes the devaluation of a country's currency. The essential difference between inflation and general price rise: general price rise refers to the temporary, partial and reversible price rise of a certain commodity e to the imbalance of supply and demand, which will not cause currency devaluation; Inflation is a sustained, universal and irreversible rise in the prices of major domestic commodities that can cause the devaluation of a country's currency. The direct cause of inflation is that the amount of money in circulation in a country is greater than its effective economic aggregate
deflation is deflation: when the amount of money in circulation in the market decreases, the people's money income decreases, and the purchasing power decreases, which affects the prices and causes deflation. The long-term monetary tightening will restrain investment and proction, lead to the rise of unemployment rate and economic recession
these two are inflation and deflation respectively.
3. There are several reasons for the country to issue more money:
1. Society is developing, population is growing again, and GDP is also growing, which should be reflected by sufficient growing money
2. China has a long-term import and export surplus, and enterprises earn a lot of foreign exchange abroad. This part of foreign exchange is returned to China and directly converted into RMB by banks for domestic use. China has several trillion US dollars of foreign exchange reserves, ranking first in the world, which requires printing a large number of RMB to exchange foreign exchange
3. Issuing more money can rece the interest rate, that is, the cost of money. This can promote investment, and investment growth can promote economic growth. Only economic growth can drive employment growth and raise people's income.
4. If more money is printed, the price will rise, and inflation will occur naturally.
if 100 yuan is used to buy a garment, and now 100 yuan is issued, and the currency in circulation is 200 yuan, then the garment will be worth 200 yuan, but the actual utility has not changed. In other words, currency depreciation is inflation
5. This is not certain. First of all, if too much money is issued and the labor force and employment rate of the society do not reach saturation, then the employment rate will increase and the efficiency of the proction structure will also increase. This will not lead to inflation but economic growth. If too much money is issued and the society has reached full employment, then a long time is equivalent to a certain proction efficiency. If more money is issued and the quantity of goods remains unchanged, inflation will occur.
6. An increase in money supply will lead to an increase in the amount of money in everyone's hands, which will lead to an increase in the demand for goods. Demand is greater than supply, and prices rise, which will eventually lead to inflation.
7. Inflation is too much money chasing too few goods. In our country, money flows into the market mainly because banks buy treasury bonds from the state, which are used by the government to provide us with various public services, such as national defense, highways, etc., and then money flows into the market
inflation leads to higher prices and lower purchasing power, but it does not mean not to buy! You can't starve to death. You can't get cold without clothes in this cold winter! People just get less than in the past. In other words, the standard of living is lower
an article is a kind of price at the beginning. Because there is more money in the market, if the original price is used, the supply of the article will be less than people's demand, so the price will rise
what happens if people save money and don't use it? Note that the currency here is the currency circulating in the market, not including your time deposit. If you don't use it, it will certainly not drive the price up.
there are a lot of goods available, but more goods are needed. There are a lot of agricultural procts, but you have to eat every day. You also consume a lot. We say that supply and demand determine the price, regardless of the absolute quantity of goods, Under a certain price, we only need to see whether supply is relative to demand or demand is relative to supply

you have too many assumptions and too many subjective factors, which makes me flustered...
8. Modern society has broken away from the gold standard, but there is always something behind a country's currency to support its value. Such as gold, foreign exchange reserves or national economy. If a country issues a large amount of money in a short period of time, the value of things supported by money cannot rise year on year in a short period of time. In other words, the more money is issued, the greater the rarity of the support. If a gold coin is equal to a 100 yuan note. But now after the issuance of additional currency, a gold coin must support 200 yuan notes. But the value of the goods we buy is the same! The original value of 100 yuan of goods is equivalent to 1 gold coin, now 200 yuan is equal to 1 gold coin, so the purchasing power of money is reced, and the relative price is increased! But in fact, the value of goods has not changed, but the value of money has declined. Issuing a large amount of money is a very irresponsible government behavior. With more money, the value of money is diluted, so more money is not worth money. In short, money is just a substitute for how many real "goods". When the real "goods" do not increase, but more money, then you can buy less "goods" with one cent, that is, money is not worth money

please take it, thank you!
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