Inflation means that the price increase is greater than the purchasing power of the current currency, and reasonable inflation will not cause economic crisis. Inflation is happening in the environment of economic recession, especially in the manufacturing industry. This is the current situation in China, and it has reached stagflation (economic stagnation, long-term inflation). At this time, prices are rising, purchasing power is shrinking, the market is shrinking, factories are difficult to operate, and the unemployed population is slowly increasing. Then enter the next cycle-leading to the continuous lack of purchasing power and the continuous shrinking of the market. Such a vicious circle will reach the state of economic collapse. Breaking this vicious circle can be solved not only by increasing wages, but also by expanding domestic demand and changing people's consumption concepts.

At present, people's consumption concept and investment concept are mainly based on savings, because China's social security mechanism is not perfect enough, and people's lives are full of more unknowns, so everyone should save more money to resist unknown risks, such as medical expenses for illness, pension, marriage and childbirth.

If we want to change people's current consumption concept and investment concept to make it a reality of expanding domestic demand, then the reform of social security mechanism is basic and basically not done well, and people will not spend all their money on what they like.

At present, any economy has to go through the baptism of crisis. The reason why there is no economic crisis is that the accumulation of quantitative change has not reached the requirement of qualitative change.

If there is such inflation and soaring prices in China, the most basic reason is that too much RMB is issued.

The currency issued by 1 09 and 10 is more than three times that of 06 -08, while the actual economic growth is only a little more than 10% every year.

2. Too many foreign exchange reserves ($3 trillion corresponds to RMB 30,000 * 6.5 in circulation). Amount of currency issued in 2009.

Personally, I think that in order to restrain the appreciation of RMB, the government may think it is feasible to issue more RMB.