Economics, Econometrics and Finance
8 years ago

Deep-rooted causes of deflation require systemic reforms for resolution.

Journal of Chongqing Institute of Commerce
The Deep－level Cause of Deflation
Yu Yuan

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Deflation is caused by not enough money circulating in the economy. The current deflation in our country is due to conflicts in areas like distribution, investment, and financing during the transition period. To solve deflation, financial and monetary policies need to be combined with system reforms.