moderate inflation is beneficial to society 通货膨胀的英语论文

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

2、esinaggregatedemand(Gordon728).Throughanalyzingthecauses,itisbelievedthatmoderateinflationisbeneficialtosocietyinmanyaspects.Demandinflationisgenerallyinducedbyprivateandgovernmentspendingandit’sgoodforeconomicrecovery.Thefinancialcrisisof2007to2008overwhelmedtheworldandmanycountries

3、facedrecession.Governmentsdeliveredaseriesofpoliciestorestoretheireconomies.Forinstance,Chinainitiatedthepositivefiscalpolicyandlaunchedaneconomicstimuluspackageof4000billion().TheCongressintheUnitedStatesofAmerica

4、alsoapprovedthepolicyofQuantitativeEasing().Whatthosegovernmentsdiddefinitelycausedinflationbutatthattimeinflationwasneededbecausetheycouldstimulatemarketdemand,whichwasgoodforeconomicrecovery.Demandinflationencourages

5、marketdevelopmentandexpansionisinevitable,whichcandefinitelyreducetheunemploymentrate.In1958,Phillipsdescribedinapaperhisobservationaninverserelationbetweeninflationandunemployment,thatishigherunemploymentinaneconomyiscorrelatedwithalowerrateofinflation(Fisher496-502).Accordingtothes

6、tatisticsfromtheEU,theunemploymentrateoftheEuroZoneinmarchof2009is8.9%andtheinflationratewas0.6%().InChinaandotherdevelopingcountries,theunemploymentrateisrelativelylowerandtheinflationrateishigher.ForChina,unemploymentrateisapprox

7、imately4%andtheinflationrateisnearly5%(CaraAssociatedPress,retrieved30Dec,2010.).Theseexamplesexplicitlyindicatetheinverserelationbetweeninflationandunemploymentrate.Demandinflationsomewhatindicatesthatmoneyinthemarketincreased,whichispartlycausedbyincreasinginvestment,includinginves

8、tmentinnon-p