Inflation in Argentina triggers money shortage, emerging countries urgently need to develop credit systems
（China Broadcasting Network 2011year1month9日）
Argentine banks have recently been short of cash supply, resulting in long queues at banks and widespread complaints from the public. The Argentine Central Bank recently urgently printed the total value100100 million peso notes (equivalent to25billion U.S. dollars), half of which has been put into circulation to alleviate the problem of insufficient cash supply. Argentina’s central bank previously explained that it was because demand for cash surged around the New Year. But some economists believe that the real reason is that Argentina experienced hyperinflation last year, with the annual inflation rate being25%To30%In the meantime, the sharp rise in prices has led to an increase in the demand for money, triggering the bank's“Money shortage”。
Lan Qingxin, associate professor at the Institute of International Economics at the w88 casino, believes that Argentina’s cash shortage is related to the inflationary superposition effect of expansionary economic policies and currency devaluation w88 policies.
Lan Qingxin: In response to the financial crisis, the expansionary monetary policy adopted for nearly two years will definitely cause inflation in the economy. In the case of inflation, general social demand will increase, prices will continue to rise, and domestic demand will be stimulated. Afterwards, inflation will have a superimposed effect, making people more inclined to spend money. At this time, the demand for currency will increase significantly.
Lan Qingxin also believes that although emerging market countries have generally maintained good economic growth rates and market liberalization, they must also pay attention to the establishment of a credit system. The maturity of the paperless monetary system will alleviate the current situation like Argentina.
Lan Qingxin: In such a country, the credit system is not very developed, especially the paperless currency has not reached a mature and developed level. At this time, more cash transactions are needed.
Related links:http://gb.cri.cn/27824/2011/01/09/2225s3117506.htm
