The essence of inflation refers to the decline of purchasing power. Another way to explain inflation is that everyone can easily make money, and the currency circulating in the market is greater than the value of goods, so it will make prices rise. Once the house and car depreciate rapidly, in this case, the most valuable thing is definitely food, because everyone can not buy things, but they have to eat in daily life, so only food will not depreciate, and there is gold, because the property of gold is relatively scarce. In ancient times, it not only represents a commodity, but also represents a monetary value, which can be circulated, so gold will naturally maintain its value accordingly.

Many people don't know much about inflation, but the real feeling is that prices will rise, which is also a problem brought about by currency appreciation. Some people think that this problem can be solved without currency appreciation. But in fact, considering the overall level of the economy, in order to make the economy circulate effectively, it is necessary to make appropriate breakthroughs and expansions to stimulate the market, so as to continuously improve the productivity and effectively develop the economy.

When dealing with inflation, what we can actually do is to make money. Only by making money hard can we solve many problems. Sometimes you can invest some of your own money. If you just put it in the bank, it will lead to currency depreciation because of the market. At this time, you can choose to invest, and it is easier to invest. You can choose whether to buy stocks, funds or houses with your own money according to your actual situation, so that you can continue to make money with your own money and cope with the impact of inflation.

Finally, effective inflation can promote the economy, but the development of ineffective economy will reduce the monetary efficiency, and the consequences of directly reducing China's GDP are absolutely terrible.