First of all, I would like to remind you that inflation did not start this year. Excessive inflation occurred in 2004. To put it simply, inflation is caused by the foreign exchange system implemented in our country---strict capital account control. Since China joined the WTO Determined by the export-oriented economic structure with a high degree of external dependence formed during the process of my country's transformation from a resource-based country to the world's largest exporter of industrial products, the foreign currency received by my country's exported products is uniformly handed over to the central bank for recycling, and an equal amount of RMB is issued. 5 With annual rapid growth (GDP and foreign trade exports), the circulation of RMB can be imagined, and the annual GDP output growth is 10%, so this "Chinese-style inflation" has appeared.

The impact is that there are more funds in the market, which is commonly referred to as more liquidity. Due to the impact of inflation, savings funds urgently need to find better investment channels when the real interest rate in banks is negative. The stock market and housing market All are affected.

On the other hand, when it comes to inflation, the central bank usually chooses to raise interest rates (adding both deposits and loans or adding only deposit interest). In addition to the expectation of RMB appreciation, foreign funds (commonly known as hot money) pass through various The influx of channels into the Chinese market has undoubtedly aggravated the domestic liquidity situation, pushing up the stock market and property market further.

This situation can only be changed when the economic structure is gradually changed, otherwise the stock market, The property market has been pushed up to a certain level, and when the bubble bursts, the Chinese economy will also suffer a devastating blow.