Inflation 肖亮寰 曾泓 陈晓珍 梁琳敏 张雪楠 国金 1105

Cause InfluenceSolution Inflation Definition Worldwide inflation storm Chinese performance Contents

In mainstream economics, inflation is a continuing rise in the general level of prices. Definition

Cause 1) The money supply is greater than the actual demand for money. 2)cost-push inflation 3)demand-pull inflatiom

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 Influence

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 Solution

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. Worldwide inflation storm

Chinese performance and measures  The inflation rate in China was last reported at 5.1 percent in November of  From 1994 until 2010, the average inflation rate in China was 4.25 percent.  An historical high of percent in October of  A record low of 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.

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