Money in every country can't be printed casually, otherwise it will bring great harm to social and economic development and people's lives. The currency of each country should be printed according to the actual needs of national economic development. Once the currency is printed more, that is, the currency circulating in society exceeds the demand, it will lead to currency depreciation, prices will generally continue to rise, and inflation will occur. This will lead to the worthless money in the hands of ordinary people, the decline in purchasing power, and the increase in people's living pressure, which is not conducive to social and economic development.

Once less money is printed, that is, the currency in circulation in society is less than the demand, it will lead to currency appreciation, prices will generally continue to fall, and deflation will occur, which will lead to a sustained economic downturn, reduced investment and consumption behavior in the market, and lead to oversupply and falling prices, which will further affect corporate profits and make the market as a whole fall into deflation. At the same time, the long-term decline in prices and asset prices has led to sluggish market demand, forced layoffs due to losses of enterprises, increased unemployment and economic recession.

Inflation is the devaluation of a country's currency, which leads to an increase in prices. The essential difference between inflation and general price increase: general price increase refers to a temporary, partial and reversible price increase of a commodity due to the imbalance between supply and demand, which will not cause currency depreciation; Inflation is a sustained, universal and irreversible rise in the prices of major domestic commodities, which will lead to the devaluation of a country's currency. The direct cause of inflation is that the amount of money circulating in a country is greater than its effective economic aggregate. The direct reason why a country's currency in circulation is greater than its effective economic aggregate is that the growth rate of a country's base currency issuance is higher than its effective economic aggregate. The reasons why the growth rate of a country's base money issuance is higher than its effective economic aggregate include monetary policy and non-monetary policy. Monetary policy includes loose monetary policy and adjusting economy through interest rate exchange rate; Non-monetary policies include loan inflation caused by the financial system dominated by indirect investment and financing, excessive long-term export surplus of international trade, excessive foreign exchange reserves, speculative monopoly, corruption and waste, increased social transaction costs, reduced quality of economic development, unbalanced economic structure and misleading consumption expectations. Therefore, inflation is not only a monetary phenomenon, but also an important reason for inflation. Whether it is monetary policy or non-monetary policy, monetary phenomenon or real economy bubble, the fundamental reason of inflation is that the GDP growth mode leads to too high GDP moisture, too large ineffective economic aggregate and a serious shortage of effective supply, which leads to the decrease of monetary efficiency.

The essential difference between inflation and general price increase: general price increase refers to a temporary, partial and reversible price increase of a commodity due to the imbalance between supply and demand, which will not cause currency depreciation; Inflation refers to the general, sustained and irreversible rise in the prices of major domestic commodities, which will lead to the devaluation of a country's currency. The direct cause of inflation is that the amount of money circulating in a country is greater than its effective economic aggregate. The direct reason why a country's currency in circulation is greater than its effective economic aggregate is that the growth rate of a country's base currency issuance is higher than its effective economic aggregate. The reasons why the growth rate of a country's base money issuance is higher than its effective economic aggregate include monetary policy and non-monetary policy. Monetary policy includes loose monetary policy and adjusting economy through interest rate exchange rate; Non-monetary policies include loan inflation caused by the financial system dominated by indirect investment and financing, excessive long-term export surplus of international trade, excessive foreign exchange reserves, speculative monopoly, corruption and waste, increased social transaction costs, reduced quality of economic development, unbalanced economic structure and misleading consumption expectations. Therefore, inflation is not only a monetary phenomenon, but also an important reason for inflation. Whether it is monetary policy or non-monetary policy, monetary phenomenon or real economy bubble, the fundamental reason of inflation is that the GDP growth mode leads to too high GDP moisture, too large ineffective economic aggregate and a serious shortage of effective supply, which leads to the decrease of monetary efficiency.