Generally speaking, inflation means that prices rise and currencies depreciate. The most intuitive impact, before a cabbage 1 yuan, expanded to 5 yuan, if the income of ordinary people did not increase five times, his purchasing power would decline and his living standard would be lowered. Inflation refers to the situation that the circulation of paper money exceeds the amount of money needed for commodity circulation, which leads to currency depreciation and price increase. Inflation is a unique social and economic phenomenon under the condition of paper money circulation. To understand inflation, we should pay special attention to two points: ① Inflation does not mean a one-off or short-term increase in the overall price level, but a continuous increase. (2) Inflation does not refer to the rise of individual commodity prices or commodity prices in a certain industry, but the rise of the overall price level. The impact of currency appreciation, taking RMB as an example: positive impact: 1, expanding domestic consumers' demand for imported products and making them gain more benefits. The same money can buy more imported goods after appreciation. 2. Reduce the cost burden of imported energy and raw materials. China needs to import a lot of resources and energy. With the appreciation of RMB, the cost of importing iron ore and oil will decrease. 3. It is conducive to promoting the adjustment of China's industrial structure and improving China's position in the international division of labor. Low price is the advantage of China's foreign trade. After the appreciation of RMB, it will force enterprises to change the development mode of unilaterally relying on price competition and turn to relying on technological innovation to promote the transformation of industrial structure. This will help to ease the relationship between China and its major trading partners. This is easy to understand. The United States clamored for RMB appreciation, and its voice was hoarse. We rose up, took the initiative to show goodwill, and Sino-US trade relations warmed up. This is an inevitable negative impact: 1 will have an impact on China's export enterprises, especially labor-intensive enterprises. The appreciation of RMB will greatly weaken the price advantage of China's export products, and the export may be in trouble. 2. It is not conducive to the introduction of foreign direct investment in China. Foreigners invest with dollars and pounds. It turns out that they took 654.38 billion+0 billion abroad. In China, they can control 60% of the shares of the enterprise. When the RMB appreciates and the dollar depreciates, they can only control 30% of the shares. Of course, they are unhappy. 3. Increase domestic employment pressure. China's export enterprises are mostly labor-intensive industries. With the appreciation of RMB, the export of domestic enterprises declined, production shrank, and people had to be laid off. There is also less foreign investment, fewer new jobs and a sudden increase in employment pressure. 4. Affect the stability of the financial market. The appreciation of RMB will bring a large inflow of hot money, but the domestic financial supervision is not perfect and the danger can be imagined. The huge foreign exchange reserves will face the threat of shrinking. This is easy to understand. With the appreciation of RMB and the depreciation of foreign exchange, the huge foreign exchange reserves will inevitably shrink. Imported inflation means that the root of inflation is not endogenous in a national market, but the inflation from abroad is transmitted to China through international trade, and then transmitted to a country by external economic factors, leading to the rise of the overall price level. Imported inflation only occurs in an open economic system,