English Edition

THE NEW SOLUTION TO THE PROBLEM OF INFLATION

Help get rid of the spiral cycle: Money supply – Inflation – Recession

Written by Nguyen Cao Dung

Summary:

Address the problem of inflation by putting money into circulation directly through commercial enterprises in order to always respect the principle of: “Money is only put into circulation when the society has acquired materials and goods as control objects to ensure value for money; And when such materials and goods are no longer available, they are sold for consumption, the money from the circulation must be recovered. “

So we will always have a balance in value between Goods and Money in a dynamically growing economy, and inflation will be automatically suppressed. We will get out of the spiral cycle: money supply – inflation – recession. The value of the national currency will always be solid and stable.

This solution will help countries suffering from high inflation such as Venezuela, Zimbabwe, … control the balance of value of goods and money in the market economy of their country, from which will control and gradually will eliminate inflation.

This solution can also help countries want to convert the economy from a centrally planned economy (such as Cuba, North Korea, …) to a market economy safely, effectively, and avoid causing major shocks (due to rising prices) in the economy, because of the control the balance of value of goods and money in the economy of their country.

This solution will help countries in the world to perfect the market economy, helping countries get rid of the spiral cycle: money supply-inflation-degradation. The market economy of the countries will grow as fast as it can without suffering inflation or deflation dragging it back anymore.