InflationInflation肖亮寰 曾泓 陈晓珍 梁琳敏 张雪楠

国金 1105

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.

Thank youThank you