What are the benefits of inflation? What's the downside?

(1) In inflation, the government, as the largest debtor, can reduce a certain debt burden. In addition, by issuing a large amount of money, the government can also receive additional fiscal revenue.

If the government uses all the revenue obtained through inflation to invest in real terms, it will take appropriate measures to ensure that private investment is not reduced by the increase in government investment. This inflationary policy will increase output and promote economic growth by increasing investment.

In other words, it's like printing too much money, but still allowing the state to use it rationally for industrial investment. And to ensure that everyone has a job and food for everyone (but the number of meals has decreased), the benefits still outweigh the disadvantages!

(2) In the case of inflation, the price of a product generally always rises faster than the rate of increase in nominal wages, and as a result, the profits of enterprises increase. This, in turn, stimulates companies to expand investment, which in turn boosts economic growth.

In other words, everything has risen, and if the income of the common people has also risen (the money has been printed more). In the past, for five yuan a kilogram of pork, your monthly income was only 500 yuan. Now everything has risen, ten yuan a kilogram of pork, your monthly income salary is 800-1000 yuan, even if there is water, in fact, it is good for everyone.

Moderate inflation is to depreciate idle funds, thus promoting less idle funds, allowing social funds to fully operate and promote economic development. If there is zero inflation or deflation, it will lead to more idle funds, resulting in weak or even regressive economic development.

The biggest benefit of inflation is that it stimulates consumption, but there are also disadvantages. The first is that the government has plundered the wealth of the people, and the second is that excessive inflation will cause the economy to overheat, and if it reaches the level of hyperinflation, it may cause serious social problems.

I have to say that Cai Jing's starting point for being ten dollars may be good, which is to make money for the country.

However, science and technology are the primary productive forces, and human blindness is the secondary productive forces. The primary productive forces are not enough, and the country is at war, which is simply a chronic suicide.

Zhu Zilong has a heart to take care of it, but to be honest, he was a sling before he crossed over. Now that the growth of the general hanging, it is the limit to be able to open a bank!

Such covert wrestling at the top of the political arena, especially such high-tech work as involving the state's monetary policy, is absolutely impossible to play without being a real high-level intellectual who has been immersed in officialdom for many years.

Of course, if Zhu Zilong is given a few more years, with the help of this main god's strengthened intelligence and cheats, it will be different.

Thinking about dispelling the idea of Liang Hongyu to die, Zhu Zilong thought about it for a long time before he said to him: "Cai Xiang's use of ten dollars is still helpless. The people will suffer temporarily, but if the war fails, the country is ruined, or are you poorer, but life can go on better? ”

"And, as far as this king knows. It is Cai Xiangjian's plan to be the top ten money, but it is not a whim. During the reign of Shenzong, Jinghu was ordered to be two and three coins, and then there were five coins in the Yuan Fu period, which was a precedent. ”

As Zhu Zilong spoke in detail, Liang Hongyu also began to be silent as if she didn't understand.

In the first year of Chongning (1102 AD), when Cai Jing was appointed prime minister for the first time, he immediately ordered the re-implementation of the new laws of the Song Shenzong period. Inherit the basis of Wang Anshi's change!

At this time, there was a Xining party named Xu Tianqi, who was the deputy envoy of Shaanxi at that time, and in order to cater to Cai Jing, he asked the imperial court to mint ten coins.

The inscription "Saint Song Tongbao" is slightly heavier than that of the small flat coin. The nominal value of the five coins is two and a half times that of the two coins, and the trial was successful and there were no problems.

You can say that the ancient people did not know much about economics, and they were not as good as the financial professionals of later generations. However, as the first family in Chinese history to use paper money, the Song Dynasty even had to touch the stones to cross the river in the social XX righteousness of New China in later generations. It's normal for them to start making some dizzy moves!

Besides, Song Huizong also felt that it was indeed inappropriate to cast ten coins, that is, the edict ordered that ten coins should only be used in Beijing, Shaanxi, Hedong and Hebei. It is not universally used throughout the country, so it can be said that it is just done near the capital.

The living standards of the people near the capital of the Great Song Dynasty are richer than those in other places. Just like the white-collar workers in the first-tier cities in later generations, the state collects heavy taxes, and they complain at the same time. In fact, no matter how poor you are, you are hundreds of times richer than the people in third- and fourth-tier cities!

Therefore, Cai Jing's ten-dollar policy, as long as it is not used nationwide, even if it has been repeated many times for many years, its influence is actually limited.

Moreover, if you calculate it carefully, as long as you work together, all of them will be effective.

In fact, there is no big problem, for example, if the common people follow the rules and follow it, there is no problem at all. There are too many people with clever minds in the helpless Chinese. And there is no treachery, no business!

Honest people will always suffer, who doesn't take advantage of such an obvious loophole?

Of course, in Zhu Zilong's opinion, the anti-counterfeiting function of this top ten money is too TM fucked. Exchange three big coins for thirty small coins, and then rebuild it into ten big coins, without any superficial difference, and make several times the profit for nothing.

Which landlord and bad guy, as well as profiteers, can resist such profits?

Marx said: "If there is a 20% profit, capital will be ready to move; If there is a 50% profit, capital will take risks; If there is a 100% profit, capital dares to risk hanging its head; If there is a 300% profit, capital will dare to trample on all the laws of the world".

Man's desires are unbridled, and government is made up of men. Even the old drivers of the People's Bank of China in the 21st century will overturn, so ordinary people should not be lucky.

Therefore, from some points of view, Zhu Zilong also agrees that Cai Jing did not do a good job in some details, so he went public with a lot of money, which is purely dead.

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finally appeased Liang Hongyu, and Zhu Zilong added another sentence to her: "Hongyu just rest assured, wait for me to think about it, when Cai Xiang takes back his life as ten coins, or find another way, it's a big deal for the king's People's Bank, find the ten coins to exchange for new banknotes......"

Liang Hongyu was taken aback on the spot: "Then we don't suffer a lot ......?" ”

"Hah...... Suffering or something, it was certain at first. However, this large amount of money is only collected near the capital, and after the conversion, it is not a small amount of money, but a new banknote from the People's Bank, which can only be used for shopping in the king's store. No matter how bad it is, it won't lose money, and there will be other benefits in the future! Zhu Zilong pretended to explain mysteriously.

"If millions of people in the capital come to the People's Bank of China to exchange the ten dollars for new banknotes, will we go bankrupt ......?" It is true that Liang Hongyu cares about national affairs, but now that she is a family woman, she is naturally still worried about whether her husband's family will go bankrupt.

"Bankrupt? Scold...... If the whole capital people exchange the big money in their hands for the new banknotes of the People's Bank of China. I'm just afraid that I will wake up laughing every night in my dreams, and the exchange standard of our new banknotes is the salt standard, and I am not afraid of a run at all, and it is a big deal to pack salt. What are you afraid of? Zhu Zilong raised his eyebrows, and his face was proud.

"Of course, it must be ......within these five years," Zhu Zilong thought for a while and added.

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