China hyperinflation @CHyperinflation

To avoid hyperinflation from happening again,the government needs to adjust the necessaries of life and the import and export of commodities trade balance,maintain the normal order and guidance and dredging of the market as well as tighten monetary and fiscal policies.

Will hyperinflation happen again in China?The answer is the probability is still relatively small because the government has adopted experience and taken many measures and precautions to maintain economic stability.

The effective way to combat hyperinflation is to carry out stabilizing reforms. Successful reforms include reorganizing government finances, reducing spending, raising taxes, and restoring the legal authority of the central bank.

Characteristic of hyperinflation .The public prefer to invest in foreign currency or non-monetary assets. · Credit is calculated according to the consumption power loss during the borrowing period. .the public USES foreign currencies to settle assets in their own currencies.

China's latest inflation report points 2018 1)Chinese CPI rose by 1.9% in the year to June, up from 1.8% in May. 2)Producer prices increased even faster, lifting by 4.7% over the year, the fastest increase in six months.

The expansion of economy in China is seen to be slowing down in 2018.However government of China-Xi Jinping is signaling that it’s sanguine about more modest economic performance as financial fragility can be made when the progress is on the top risk.

Effect of hyperinflation. 1)People lose their savings as cash becomes worthless 2)Unemployment increase as many company collapse 3)Government tax revenues fall, and it has trouble providing basic services 4)Government prints more money to pay its bills and worsen hyperinflation

Fact about Chinese hyperinflation. 1)China is the 1st country to experience hyperinflation. 2) China had went through two times hyperinflation during 1930s and 1940s. 3)A good harvest caused consumer prices to fall, and wholesale prices rose by 200% between Dec 1937 and Dec 1939

Hyperinflation is an inflation that we can’t control. Hyperinflation happen when the price of goods suddenly rise more than 50% in a short period. For example the price of rice increase to high level in the afternoon and the price continuously increase for a long period.