Post
Topic
Board Economics
Re: Inflation and Deflation of Price and Money Supply
by
lepbagong
on 06/06/2020, 03:13:59 UTC
Yes. Inflation and deflation of the prices is controlled by the governmental bodies. This is not dependent only on the cryptocurrencies. Various financial activities that are taking place at the national and the international level determine the prices in a specific country. Moreover the economic growth is much relatable to the development in different spheres.
Not to mention that manipulating national currencies (eg. by printing money) is often done by purpose, to make own companies with their products cheaper than of its foreign competition. This is how China for years had been working as a factory for the world.
Each state is trying to help its producers by taking various tricks, whether it is a deliberate depreciation of the national currency, taxation of imports with various duties, and much more.
It’s just that some states use legal methods, while others may cheat.
overall US govs has been cheating all this time anyway - they have printed money so they inflated all funds of holders outside of the US, and then gave these printed money to the citizens
economically thats tricky, not cheating really, but we all know it is
i heared that but i dont know if this kind of trick is effective this time of crisis that affect the prices of all cryptocurrencies and also a paper money that we use for everyday's need. We witnessed that every crisis that effect us , it can make the value of crypto down or up.

as a central finance may not print more money than foreign exchange reserves in the form of gold and securities, then it will certainly experience inflation that can make the country worse off the economy. I doubt it is done, there are still many ways that can be done as a developed country in all fields. but I do not believe that the crisis will directly affect crypto because of the different treatment, crypto will continue to run if there is inflation or deflation.