Microscopic Price Level Rose Within The Endogenous Mechanism

The present paper constructs a microcosmic endo - mechanism for price level rise on the basis of a factor analysis.The increase of C in the microcosmic endo-mechanism for price level rise is discussed with reference to the limitedness, scarcity, valuableness and price growth of natural resources.The increase of V and its impact upon price level rise are analyzed in relation to the rise of cost for labor reproduction, the current pay system, the status of complex work and mental work as well as the increase of their proportion, distribution based on the elements of proportion , the distribution system highlighting efficiency priority and relative fairness, the increase of investment in human capital, and so on.The impact of profit and tax upon price level rise is elaborated after a treatment of the M increase in terms of profit growth and tax expansion.The increase of (C+V) and its influence on price level rise is expatiated by taking into consideration the existence of cost - push inflation and the drive of special cost.The increase of (V+M) and influence on price level rise is illustrated by taking into account the high rate of added value the major measures for increasing added value, instances of price level rise resulting from high - priced new products, special added value, and so on.Also discussed is how the microcosmic endo - mechanism for price level rise meets the challenges from the rapid development of neo -/hi-tech, surplus economy as well as the buyer's market, deflation, and some other realistic problems.The establishment is how the microcosmic endo - mechanism for price level rise as attempted here serves to reveal the intrinsic law of price level rise movement and exemplify microcosmic accounts of various significant socio - economic issues, an identifiable trend today in the field of economics both home and abroad. It is argued that if the microcosmic endo - mechanism for price level rise can obtain and sustain the test of significant changes in social reality, it will be verified that inflation has not totally perished and that there is still a long way to go before man holds it under absolute control.