Price rises, macro-control pressure is great, food prices such as beans and sugar are rising, and the adverse impact of inflation on production development is discussed.

In the case of inflation, it will definitely have an impact on social and economic life. If the inflation rate in society is stable and people can fully expect it, then the inflation rate will have little impact on social and economic life. Because under this kind of predictable inflation, various nominal variables (such as nominal wages, nominal interest rates, etc.) can be adjusted according to the inflation rate, so that the actual variables (such as real wages, real interest rates, etc.) Change. At this time, the only impact of inflation on social and economic life is that people will reduce the amount of cash they hold. However, when the inflation rate cannot be fully anticipated, inflation will affect social income distribution and economic activities. Because at this time people cannot accurately adjust various nominal variables and the economic actions they should take based on the inflation rate.

(1) Between the debtor and the creditor, inflation will benefit the debtor and not the creditor

Under normal circumstances, the debt contract for lending is based on the currency at the time of signing. The inflation rate is used to determine the nominal interest rate, so when unexpected inflation occurs, the debt contract cannot be changed, thus causing the real interest rate to fall, the debtor benefits, and the creditor suffers. The result is an adverse impact on loans, especially long-term loans, making creditors reluctant to grant loans. The reduction in loans will affect investment and ultimately reduce investment.

(2) Between employers and workers, inflation will benefit employers and disadvantage workers

This is because, under unpredictable inflation, the wage growth rate will It cannot be adjusted quickly to the rate of inflation, causing real wages to fall even when nominal wages remain unchanged or increase slightly. A fall in real wages increases profits. Increased profits help stimulate investment, which is why some economists advocate mild inflation to stimulate economic development.

(3) Between the government and the public, inflation will benefit the government but not the public

Because under unpredictable inflation, nominal wages will always increase. increase (although it does not necessarily maintain the original real wage level), as the nominal wage increases, more people reach the tax threshold, and many people enter higher tax brackets, which makes the government’s tax Increase. But the amount of tax paid by the public has increased, while real income has decreased. The tax revenue the government receives from this inflation is called the "inflation tax." Some economists believe this is actually government plundering the public. The existence of this inflation tax is not conducive to the increase of savings, but also affects the enthusiasm of private and corporate investment.