Moderate Inflation Is Beneficial to Society 通货膨胀的英语论文

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1、ModerateInflationIsBeneficialtoSocietyIneconomics,inflationisthephenomenonofpricesofgoodsandservicesgenerallyrisinginaneconomyduringaperiodoftime(Barro895).Therearecomplexfactorscontributingtothephenomenonandyetnoeconomisthasadefiniteconclusion.Inflationismorecommonlyinduced

2、byincreasesinaggregatedemand(Gordon728).Throughanalyzingthecauses,itisbelievedthatmoderateinflationisbeneficialtosocietyinmanyaspects.Demandinflationisgenerallyinducedbyprivateandgovernmentspendingandit’sgoodforeconomicrecovery.Thefinancialcrisisof2007to2008overwhelmedthewor

3、ldandmanycountriesfacedrecession.Governmentsdeliveredaseriesofpoliciestorestoretheireconomies.Forinstance,Chinainitiatedthepositivefiscalpolicyandlaunchedaneconomicstimuluspackageof4000billion().TheCongres

4、sintheUnitedStatesofAmericaalsoapprovedthepolicyofQuantitativeEasing().Whatthosegovernmentsdiddefinitelycausedinflationbutatthattimeinflationwasneededbecausetheycouldstimulatemarketdemand,whichwasgoodforeconom

5、icrecovery.Demandinflationencouragesmarketdevelopmentandexpansionisinevitable,whichcandefinitelyreducetheunemploymentrate.In1958,Phillipsdescribedinapaperhisobservationaninverserelationbetweeninflationandunemployment,thatishigherunemploymentinaneconomyiscorrelatedwithalowerr

6、ateofinflation(Fisher496-502).AccordingtothestatisticsfromtheEU,theunemploymentrateoftheEuroZoneinmarchof2009is8.9%andtheinflationratewas0.6%().InChinaandotherdevelopingcountries,theunemploymentrateisrelativelylowerandthei

7、nflationrateishigher.ForChina,unemploymentrateisapproximately4%andtheinflationrateisnearly5%(CaraAssociatedPress,retrieved30Dec,2010.).Theseexamplesexplicitlyindicatetheinverserelationbetweeninflationandunemploymentrate.Demandinflationsomewhatindicatesthatmoneyinthemarketinc

8、reased,whichispartlycausedbyincreasinginvestment,includinginvestmentinnon-p