How to battle deflation - 未名空间MITBBS历史存档

国际科技财经博客移民网络热点娱乐民生时事公众号

Redian新闻

>未名空间

>Economics - 经济

How to battle deflation

How to battle deflation# Economics - 经济

d*o2099-09-12 07:09

1 楼

I think many agree that China has a deflation problem, all prices are
dropping. But why can't the government keep printing money until we
see the deflation stops? I know it isn't that simple but someone can
enlighten me?

q*i2099-09-12 07:09

2 楼

the problem, as I understand it, is due to lack of consumer
confidence: people are so concerned about their ability to generate
future income, they save all they can now in anticipation of that
future risk. Well, if noone buys anything, factories go under,
people get laid off, which in turn reaffirms and amplifies the
perceptionof future uncertainty -> becomes a vicious cycle.
by just printing money (and artificially stimulate
(governmental) expenditure) in a country where corruption
is everywhe

【在 d*o 的大作中提到】

: I think many agree that China has a deflation problem, all prices are
: dropping. But why can't the government keep printing money until we
: see the deflation stops? I know it isn't that simple but someone can
: enlighten me?