Liu Lang chatted with his mother for more than an hour, and then Xu Wenxiu went out to buy groceries, while Liu Lang sat at the desk, picked up a pen and wrote on the paper "How to avoid impending inflation".

Writing an essay is not a lot of words, just over 3,000 words, starting with the causes of this inflation, then the consequences that will be caused, and finally how to deal with this huge crisis.

That's right, Liu Lang knows that this inflation is a crisis for the country, and the consequences are also one of the most serious since the founding of the People's Republic of China, the consequence is that the reform and opening up has been stagnant for several years, and it was not until the early nineties that it gradually eased.

"I have to stop this crisis, but can I do it?"

Liu Lang didn't dare to confirm that he could write out all the reasons for this inflation, but this can involve a lot of sensitive things, will they do what they say?

But if you don't work hard, how do you know you can't do it?

In the core of the country, Zhao Hongyang and the country's top officials are holding a meeting, in fact, in recent days, such a meeting will be held every three or five times, and there is only one topic, that is, how to curb inflation at this stage.

In fact, inflation began at the end of last year, and prices in the country rose by about 6 percent in the first three months, and the country's price growth in the past 20 years did not exceed 2 percent, and in just three months, it was three times the growth of the past 20 years.

But it did not attract much people's attention at that time, after all, this year is the seventh year of the country's reform and opening up, and the gradual opening of the market has been the trend of the times, and the people's willingness to buy is stronger, but at this stage, the country's materials are still in short supply, and the price of goods has risen due to money and nothing, and this kind of inflation symbolizes that the people have more wealth in their hands, but it makes many people feel happy.

However, in the following months, prices grew rapidly, and by last month, the inflation in the first half of the year alone reached 10 percent, and the rate of price growth is still increasing, and if it is allowed to develop, the relevant departments of the state expect that by the end of the year prices will exceed 20 percent, and this is a big problem.

The reason for inflation is the shortage of materials, many people understand this truth, the country to formulate the future service industry-based market strategy is to solve this main contradiction, but the strategy is a strategy, it takes time to achieve, it will never be a problem that can be solved in one or two years, the main problem at this stage is to curb the soaring prices.

The first method used by the state was to increase the currency and raise the wages of the common people to offset the soaring prices, which now seems to be not a good method.

"Ladies and gentlemen, the topic of discussion at today's meeting is still the same, and we have to find a way to curb the soaring price rise! If prices continue to rise like this, it will be a disaster for the common people and will cause huge losses to the country!"

Zhao Hongyang frowned, he couldn't sleep at night these days, thinking about this matter every day, and the huge mental consumption made this nearly seventy-year-old man a little unbearable.

"Carry forward Prime Minister, Liu Lang returned to the capital the day before yesterday, I met with him, he put forward some opinions, I summarized them, I think these opinions can provide us with some help!"

Lu Mingzhi, who was sitting in the distance, immediately said, Lu Mingzhi is the person in charge of the State Education Commission, and it stands to reason that there is no need to participate in such an economic meeting, but Zhao Hongyang still found everyone in order to brainstorm.

"Oh, Liu Lang is back, show me his advice!"

Everyone present was shocked, Liu Lang's knowledge was convinced, and his opinions would definitely be valuable.

Lu Mingzhi handed a few pages to Zhao Hongyang, which he recorded after he went back according to what Liu Lang said.

"The main measures to reduce fiscal expenditures are to reduce state expenditures on capital construction and investment, to restrict investment in public undertakings, to reduce expenditures of various government departments, and to reduce expenditures on social welfare......... We have thought about this method, but if the country is now engaged in large-scale construction, won't the process of reform be hindered?"

Zhao Hongyang shook his head slightly.

"Promote the Prime Minister, Liu Lang also thinks so, so he has other ways!"

Lu Mingzhi hurriedly said.

"The direct cause of inflation is the excess money supply, so to reduce the inflation rate, the central bank can achieve this by reducing the money supply in circulation, including the sale of government bonds through open market operations, the withdrawal of money, and the reduction of the stock in the economic system......... Reducing the money supply? This is the opposite of what we are doing now!"

Zhao Hongyang was taken aback when he saw this.

The purpose of the state to increase the amount of money now is to hedge against inflation, and the state has issued more than 10 billion yuan in three or four months, three times that of last year, but Liu Lang's opinion is the opposite, asking the state not to issue currency.

Of course, Liu Lang's suggestion has also been put forward by many economists before, especially Professor Li Weining of Capital University, who advocated tightening the amount of money issued to limit the consumption of the people so as to reduce consumption, and also raised interest rates.

In response to these two proposals, everyone has also discussed, but Zhao Hongyang's opinion is not to adopt these two plans for the time being, because once the amount of money issued is restricted, then the people's income will be reduced, which will have a very bad impact on the people, and in addition, raising interest rates will also restrict the development of the private economy, which will have a bad impact on the reform.

Liu Lang's proposal coincides with that of economists, and it shows that these two measures are indeed effective, but once they are implemented, what should be done about the country's reforms? You must know that at the World Economic Conference a few months ago, China made it clear to the world that it would carry out the reform to the end.

Zhao Hongyang was so confused that he had to look down.

There is a third solution, that is, to increase the supply by policy means, the reason for inflation is that the total demand of the society is greater than the total supply, and increasing the total supply is the key, even if our productivity is not enough, but if everyone has the enthusiasm to produce, let them produce more and work more, then it can greatly alleviate the defects brought by the productivity, the main thing is that the state increases the willingness of workers to work and labor productivity in the way of tax cuts, and then increases the investment desire of enterprises, thereby driving the increase of total supply; secondly, reduce the government's restrictions on enterprises, so that enterprises can better expand the supply of goods; and encourage enterprises to adopt new technologies, renew equipment and adjust the industrial structure.

"Oh, that's a novel solution!"

Zhao Hongyang's eyes lit up.

"Liu Lang is Liu Lang, there are always some unexpected ideas, let's take a look, I think this method is good!"

Zhao Hongyang immediately asked people to make many copies of this material and distribute it.

"Increase supply, reduce government restrictions on enterprises, and let enterprises expand the supply of goods, well, this is a good way!"

Many officials nodded.

However, officials of the Economic Commission and Vice Premier Feng Youjun frowned.

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