1 thought on “Sweet potato silver coins issuance”

  1. The circulation of sweet potato silver coins depends on the specific situation of the year

    The circulation of each year is not fixed. The specific amount needs to be calculated according to the situation of the year.
    The simplest concept is that the annual circulation is equal to three additions:
    1. The total amount of destruction, including the destruction of various reasons, is mainly the recycling of the old currency, but there are also wrong editions. There is an old version of the additional recycling when the new version is released. The simplest understanding of this is the metabolism of a paper, which will not have any economic impact. (Of course, the money printing is costly)

    2. It is expected to increase GDP. Assuming that the entire society only produces eggs, it produces 100 pieces last year, and this year is expected to increase by 10%this year, and 110 eggs will be produced. If the schedule is to keep the price unchanged, it is necessary to increase the currency that can increase the circulation by 10%. Assuming that a egg is 2 yuan, you should not only pay for 10 eggs*2 yuan for each = 20 to pay for. Because the proportion of currency circulation is considered, that is to say, not all printed money is used in egg trading, and some may be pressed under the mattress. (It is not counted in the bank, because after removing the dilapidated coins, it returns to circulation). In addition, note that this is the response to expected production growth, but it is expected to be inaccurate, so everyone will do their best.

    3. Support currency/fiscal policy, there are planned increase/decrease. As mentioned above, if the increasing amount is exactly the result of economic production increment and circulation rate, the price remains unchanged. But this obviously does not meet the requirements to maintain a slightly stable rise in CPI, and the simplest solution is to have limited super -issuing currencies every year. Other situations, such as implementing a stable monetary policy on the premise of not raising interest rates, can be achieved by reducing hair loss. For the realization of various currency/fiscal policies, the amount of currency issuance is an important tool in the toolbox. There are many other tools in the toolbox, and there are very complicated correlations between some tools, so it is a very complicated knowledge to use. If you only consider currency issuance, you know that one of them is sometimes used.

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