The two of them walked together, and Zhao Hong was always smiling and looking at Xiao Wanting, enjoying the warmth of the two of them alone.

"Hey, what do you think of our work arrangement? This is the plan that Guo Yi and I have chosen together, if there are no accidents, we will follow this direction in the future!"

Xiao Wanting patted him a little dissatisfied, and she also felt that Zhao Hong seemed to be a little distracted.

Zhao Hong thought for a while and asked, "I used to ask you and relevant departments to read more books on the study of RB economy, and you can also refer to RB's experience when making future plans." Have you all done it?"

She smiled a little proudly and said, "Of course! Guo Yi and I have read the relevant materials many times, and later handed over some of the materials to the strategic planning department, so we must refer to them when formulating them!"

"Then why haven't you made a more long-term plan? Although there is nothing wrong with domestic investment in expanding physical production at present, you have not thought much about how to withdraw in the future!"

Xiao Wanting's eyes widened, and she said in surprise, "Do you need to think about how to quit now?"

"Although the bubble inflation and the post-bubble economic stage are coming, no one knows when they will come. Predictably, the time will get shorter and shorter. At that time, country M had several decades of development, while Japan had more than ten or nearly twenty years of development, and Southeast Asian countries had 11 or 2 years. The larger the volume of domestic economic problems, the greater the impact will be once it develops, but along with development, there will definitely be the accumulation of bubbles, and the faster the development, the faster the bubble will accumulate, and finally when the bubble accumulates to the point that the world can no longer bear, it will definitely burst! Bang! It will explode all at once!

Zhao Hong talked about things that seemed to have nothing to do with him in a playful tone, dancing and comparing the accumulation of bubbles and bursting! When he told the story, he was always smiling, and when he talked about the burst, he was even more excited! Without a trace of fear.

However, Xiao Wanting was a little unnatural when she listened to the story, making her career bigger and stronger has always been her goal, but when should she give in, she really hasn't thought about it carefully!

In order to solve the huge trade deficit of country M, in September 1985, the finance ministers and central bank governors of M, R, D, Y, and F signed the "Plaza Agreement" at the Plaza Hotel in N City. The agreement decided to adopt a joint intervention in the currency market to reduce the exchange rate of the M dollar against the R dollar and the mark. Prior to this, the exchange rate of M yuan against R yuan was around 1:250, and then R yuan entered a continuous appreciation channel, reaching 1:153 in September 1986 and reaching a minimum of 1:120 in 1987, and in less than three years, R yuan doubled against M yuan.

In order to offset the impact of the appreciation of the R yuan on exports (the so-called "appreciation depression") and to further expand domestic demand, the RB government has stepped up policy stimulus. Between January 1986 and February 1987, the RB Central Bank lowered the rediscount rate five times in a row, from 5% to 2.5%. The last of these rate cuts was largely driven by the Louvre Accord signed in February 1987 between the finance ministers and central bank governors of the Group of Seven (G7), whose main objective was to maintain the net interest rate differential between country M and the major economies and to avoid excessive depreciation of the dollar. At the same time, the government has also promoted financial institutions to expand the scale of credit through "window guidance".

In 1986, the growth rate of "M2+CD" of the RB government was 8%, and in 1987-1989, it rose to 10.8%, 10.2% and 12%, which was always more than three times the GDP growth rate. In addition, RB has expanded its financial investment since 1986.

The cheap cost of capital, the excessive amount of money and the investment incentive policy have promoted the rapid rebound of the RB economy, but the continuous appreciation of R yuan, a large influx of hot money and favorable leveraged investment opportunities have risen from 13,083 points at the end of 1985 to 38,915 points at the end of 1989, a nearly two-fold increase in four years, and the total market value has risen from 190 trillion R yuan to 611 trillion R yuan in the same period, an increase of 3.2 times, and it has become the world's largest stock exchange by market capitalization. Between 1986 and 1991, residential land prices rose by 148 per cent in RB cities and 245 per cent in the six major cities. At the height of the bubble, Japan's land area was only 1/25 of that of country M, but the total value of land assets was four times that of country M!"

Although most of these Xiao Wanting have already seen it, when she heard Zhao Hong's explanation again, her feelings were still very different. Seeing that he was very serious, she also asked with some hesitation.

"Will our country also follow such a path of development? Isn't it not afraid of the undesirable consequences that will follow?"

"Yes, and it's going to get worse! Because domestic finance is relatively closed. There is no free convertibility and entry and exit of money, which means that bubbles can accumulate more unscrupulously!

The size of money will increase even faster, and the prices of certain things will fly even more like wings! Just like the housing prices that preceded the sea market, all ordinary people today are scolding the terrible high price! But it may rise dozens or even hundreds of times in the future! Do you dare to imagine it?"

Xiao Wanting gasped a little dumbfounded, and said with some trembling, "Does this world really have to be so crazy? Is it really that expensive to have a house in Haishi? Is it still a house that people live in?"

At that time, all factories will not be profitable, because if housing prices increase, the wages of employees will have to be raised, and the cost of production will increase, which means that the competitiveness of factory products will definitely decline, and they will even be forced to lose money, but how can any loss-making enterprises exist in the world? After that, a large number of ordinary labor jobs disappeared, and some brick makers said that industrial upgrading and industrial transfer were the way they should be! If some leaders were really elected by ordinary people, then those who agreed with industrial transformation and upgrading would certainly not be elected! Because this kind of transformation and upgrading meant the disappearance of a large number of ordinary labor jobs, and no leader who did not consider the ordinary people would be elected! Therefore, in a certain sense, those leaders never represented ordinary laborers! But the ideas of some so-called social elites! ”

Zhao Hong said something in one breath, some words that had been held in his heart for a long time, and his emotions seemed to have calmed down to a certain extent!

Xiao Wanting said with some approval, "That's true! If I had the opportunity to vote, I would definitely vote against such a leader! If housing prices are high, in the long run, it will force industrial upgrading, and it will also be the disappearance of a large number of ordinary labor jobs! Ordinary people are becoming more and more difficult to find jobs, not only are their wages getting lower and lower, but the cost of living is also getting higher and higher, and no matter how good the urban development is, what does it have to do with ordinary laborers? Because even if they graduate from college, they are still ordinary laborers! Ordinary jobs are urgently needed jobs in public life!"

Zhao Hong nodded with some grievances, "But there has never been a society in this world that can allow ordinary people to participate!