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Four Factors, Such As Excessive Currency Growth And Rising Prices, Will Prevent Inflation.

2010/11/11 21:40:00 54

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On the 10 day, Zhou Wangjun, deputy director of the price department of the China Development and Reform Commission, received an exclusive interview with the Chinese government website on hot issues such as "excessive price rise" and answered questions from netizens.

Zhou Wangjun pointed out that

currency

Four factors, such as excessive issuance, lead to the current price rising too fast. The state will take four measures to prevent prices from rising.

Excessive currency issuance leads to excessive inflation.

Zhou Wangjun believes that there are several reasons for the current price rise: the first is excessive issuance of money.

This is a common problem all over the world.

Especially after the recent quantitative easing monetary policy in the United States, the price of most commodities in the international market has risen sharply over the past few days. Oil has reached $87 a barrel, and cotton and sugar have gone up very badly.

Second, there are also some temporary factors, such as the rise in the price of vegetables this year because of the disaster weather.

Third, in the process of industrialization and urbanization, labor, capital and land resources are rapidly flowing to the cities, and the production resources in rural areas are relatively reduced.

Fourth, hot money speculation factors.

In the first half of this year, prices of mung beans, garlic and cotton rose.

cotton

Every ton has risen to 30 thousand and 3, that is, funds are being hyped inside.

Cotton futures in Zhengzhou traded about 30000000000 in November 8th, far exceeding the normal range, with a high turnover rate.

In the first half of the year, mung bean and garlic also appeared hoarding and malicious speculation.

All in all, these four reasons have led to excessive inflation this year.

Four measures to prevent inflation

Zhou Wangjun said 2008 International

financial crisis

After that, in order to promote economic development, all countries in the world have issued loose monetary policy successively, and ample liquidity has caused pressure on price rise. There must be a release process.

What we can do is to control the price increase within a certain range and control it within the scope that urban residents and ordinary consumers can afford.

As for how to deal with it, the first is to develop production. The key is to develop agricultural production. As long as the supply of agricultural products and basic consumer goods, such as grain and live pigs, can be guaranteed, there is a solid foundation for dealing with inflation.

The second is to ensure the supply. The material supply is very sufficient, and there is no problem in supply by means of material allocation, import and export adjustment.

Third, we should give appropriate subsidies to low-income groups, including low-income groups in urban and rural areas, poverty-stricken families in schools and so on. We should make proper subsidies through financial channels so that their living standards will not be reduced because of rising prices.

The fourth is to take some macro measures, such as fiscal policy, strengthen market price regulation, prevent speculation, and also make clear understanding of prices and rational consumption through policy interpretation.