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How much does the central bank pay? What is the decision?
Productivity (determining the total price of goods) determines the currency circulation of a country. If the country's currency issuing institutions issue excessive currency, but the productivity does not increase correspondingly, that is, the goods produced do not increase correspondingly, so that more money is needed to buy goods because of the relationship between supply and demand, thus devaluing the currency internationally.
Money is just a form of government controlling the national economy. For example, if the government wants to enrich the national treasury, one way is to levy taxes normally and the other way is to print money.
The second method is because the productivity has not developed correspondingly (the quantity of goods has not increased correspondingly), and the money in the hands of ordinary people is worthless, which means that the second method will make the government rich and the ordinary people poor, and then the ordinary people can't afford to buy things, which is not conducive to economic development (not conducive to the increase of commodity output).
Extended data:
Elements of productive forces
The basic elements of productivity are: labor materials based on production tools, labor objects introduced into the production process, and workers with certain production experience and labor skills. It is the internal dynamic foundation of social development. In addition, human beings use all kinds of professional science and engineering technology to manufacture and create products of material civilization and spiritual civilization to meet their own survival and living ability.
Productivity also includes science and technology. Science and technology can be applied to the production process, infiltrated into the basic elements of productivity and transformed into actual production capacity.
The invention and creation of science and technology will cause profound changes and great progress in labor materials, labor objects and the quality of workers; Scientific application to production organization and management can greatly improve management efficiency; Workers' mastery of science and technology can greatly improve labor productivity.
Baidu encyclopedia-currency circulation
Baidu encyclopedia-productivity
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