rights reserved

Negative value of the inflationary theory:After the exchange of money are generated each time a new bubble. Function is to participate in the currency exchange process, so, in a market, how to control the amount of money?When trading in a market the more frequent exchange of money involved the more the number, the more new bubble generated. Generate a new number and volume of the bubble the more so the higher the utilization rate of the currency, then the less the demand for money, that is, the smaller the money supply needs. This is the currency in the exchange process caused by the law.This shows that a more frequent trading market, the exchange process requires less amount of money, the higher the utilization rate of the currency. That is, when less money supply, the market exchange rate is relatively high, trading more active.Most people here may have a "number of frequent exchange of the money supply needed to be big," this misunderstanding. This is due to neglect an important feature of money: Money can be repeated to generate new bubbles. This feature has already been discussed before. Money can be repeated to generate new bubbles, that is, the exchange continued to complete the new process, then in a market exchange frequent, repeated use of the currency increase in the number, then the currency requirements will be reduced, the formation of the negative value of the deposition.Sedimentary formation of the negative value of inflation.Previous discussion shows that the amount of money invested less, the market will often times some of the exchange. Then when put in the amount of money increases, the number of exchange market will become less, the market appears deserted.When increasing the money supply, the time the currency exchange rate will inevitably decline, will form a negative value of the currency deposits. Through the exchange of currency in exchange for the vast majority "are value", this time, the negative value of the products the market will have to increase accordingly, and currency deposits, which is negative relative surplus-value products will become a positive value of anticipated future product variable length of time, money itself has caused some negative relative surplus value is still early into the negative value of the actual product but the surface appears to be a false positive value of the product exchange, the exchange process in a false, one people with a negative value of the currency a negative value of the product purchased, but not to the negative value of the product is converted to positive value, but is used to hold until the future use and then converted to a positive value, the actual deposition process, when people can not buy back the actual conversion is the value of "negative value of the product", in fact, to achieve the money part of the deposition, the second is the formation of a negative value of the currency products deposition. These two deposits give "not involved in negative exchange-value products" to "positive value" products is expected to get longer, and time is longer, the mean value of the growing trend of demand, then the negative of these have not yet exchanged value to measure the value of products with demand for its value to become larger when. Demand for increasing the value of law has already been discussed before, the fewer the number of products, the demand will be higher value, according to people often judgments, the longer the case, the greater the amount of product exchange, that is, the negative value into positive value the more the number of products , then the remaining "not become a positive value," the negative value of the fewer number of products, with "demand value" to measure the negative value of the higher expected value of the product. This form of "negative value and negative value products and negative currency value products," the deposition of increased demand for products with negative value when measured against the expected value of the increased value of the phenomenon, that is inflation.Inflation is the direct cause of the excessive negative value of the currency. Quantitative monetary large negative value, the market exchange rate becomes low, so that the value of the negative value of the product is expected to become larger and higher prices, inflation occurred.The less money supply, market transactions more frequently.Large negative value of the money supply, the formation of the negative value of the currency deposits, a direct result of inflation, then the negative value of the currency, the negative value of the currency products, the negative value of the product will be the formation deposition, a negative value to measure the value of products with the expected demand for larger values negative value of the product price becomes higher.