Research Of The Reasons And Strategies Of Recent Inflation

Inflation is the eternal topic in Economic filed. Even to now there are still manyeconomists who are researching this. Now our country is facing a large-scale inflationwhich brought huge negative influences to people’s life, companies’ productions andsocial stability. Inflation is the phenomenon caused by the excessive issue of currencythat exceeds the required amount in circulating, resulting in continuous deprecation ofthe currency and constant increase of the price of common goods. Inflation is auniversal phenomenon and it matters the stability of people’s life and the developmentof the economy. Because inflation has the characters of universality, infusibility andcomplicity, its influence reaches every individual in economy life. China is now facedwith a ground of comparatively fast increase in price level. Many researchers havestudied the cause of inflation of this turn but there is no united conclusion. This articlecenters on the analyses of the differences between the latest inflation and the formerones and the prospect of current one, and comes to the conclusion that the home andabroad causes of China’s current inflation vary, including inflationary expectations,liquidity excesses, the economy-developing structure and the pressure transmitted bythe international inflation. These factors affect the current inflation in differentdegrees, but the analysis of the interactions in them can lead to a comparison in theimportance, then a conclusion can be safely drew that the crucial cause of the currentinflation. After this, this article makes a conclusion to the key reason and most directcause of the inflation of this turn on the base of the former analysis, and gives somerelevant strategies about how to deal with it. I hope this article can be a reference forlater researches and policy practice.