The first thing to look at is the exchange rate. Under the background that the US dollar has the right to settle international trade, the total amount of the US dollar remains unchanged, while the total amount of the RMB increases. The appreciation of RMB will lead to the increase of foreign purchasing power and higher export prices. It seems that our international purchasing power has increased. But according to Nash equilibrium theory, major markets such as the United States and Europe will also adjust their monetary policies and print money for us. We are in a state of foreign exchange control, RMB settlement is limited, and our products are mainly concentrated in low-end processing, so it is external.

Then talk about M2, which is the total amount of money issued by our macro economy. Generally speaking, it is the currency circulating and stored in banks and markets. Let's make it clear that money is infinitely expanding, and the improvement of productivity will inevitably lead to the prosperity of social goods, which will lead to the continuous growth of money, but if it grows too fast, inflation will occur. Our currency circulation is about 18% ~ 20% per year to adapt to the 9% annual growth of GDP. But now, in addition to statistics, the influx of hot money through foreign trade has also caused a large number of currencies dominated by foreign exchange, which of course makes inflation serious. When the total amount of social money issued is much higher than the total amount of goods produced by social goods, the decline in purchasing power is certain.

China has long used real wage growth as an indicator to measure national growth, while foreign countries use purchasing power, Engel coefficient and non-core inflation rate to measure people's happiness. Of course, two results are obtained.