The reason why inflation occurs is because the country’s currency issuance is too large, the foreign trade export surplus, the influx of foreign funds, and investment in the short term are too fast. Long-term inflation will cause prices to rise in a certain country or region, lower people's actual living standards, and even cause national debt to depreciate. The expansion of national currency issuance leads to inflation

For a country, the total amount of currency issuance and the corresponding amount of gold in the national treasury should be equivalent, so as to ensure the stability of domestic prices. , but in order to stimulate the economy and increase employment, some countries turned on the money printing press, printed money crazily, and issued currency on a large scale, which led to a substantial increase in domestic commodity prices. In other words, money is worthless. This causes prices to soar. At this time, goods on the market become scarce and the prices of goods become extremely high, inducing inflation. Excessive foreign trade export surplus leads to inflation

Long-term large trade surplus leads to the uncontrolled development of resources in resource-based countries, thus forming a large surplus under financial and capital accounts and forming a foreign debt burden. Sustained trade surplus will lead to an increase in foreign exchange reserves, leading to a further increase in the supply of domestic currency in the market, while the total amount of labor services in the market has not changed, and the excess currency in the market directly leads to an increase in prices. At this time, workers' wages When the level rises, inflation will naturally occur. The influx of foreign capital and excessive short-term investment will also boost inflation

Foreign capital inflow will increase the supply of the domestic currency, causing the country's currency to depreciate, and the purchasing power of foreign currency to increase. When exports are in short supply, , the value of the local currency remains unchanged, resulting in a large amount of exports, while the foreign currency depreciates compared with the original value, boosting inflation. At the same time, short-term investment is too fast, the supply curve is less sensitive to price, and the price increase will accelerate. The demand in the short term will be strong, accompanied by the rapid rise in prices, thus promoting the occurrence of inflation. The impact that inflation can bring: rising prices, people's living standards, curbing imports

Inflation will bring huge harm to our economy. First, our consumption level will continue to grow and the currency will depreciate. , consumption power declined. Secondly, bank deposits will decrease, leading to capital outflows. Thirdly, our employment opportunities may increase, but as prices soar, people's living standards will be dragged down and imports will decrease. Continuous inflation will cause the country's economy to fall into chaos, causing the entire country or region's economy to fall into a devastating blow.

For us personally, the most intuitive feeling is that the money in our hands is getting less and less, all goods are becoming more and more expensive, and the quality of life is getting lower and lower. For society, if economic development deviates from the correct track, social wealth will also be transferred in the process of inflation, and the gap between the rich and the poor will widen.

In short, inflation is not beneficial to the economy of a country or region. There are many reasons for inflation, such as the impact of supply and demand, foreign trade export surplus, excessive currency issuance, and the influx of foreign funds. and excessive investment. These are things that we need to respond to in a timely and cautious manner. The government must do a good job in macroeconomic regulation and control in order to stabilize the economy on a fixed track and develop normally, so that the people can live and work in peace and contentment.