Inflation pressure in Taiwan continues to be high. What are the reasons? What impact has it had on the local area?

Inflation is simply an increase in prices. Whether it is the price of labor services or the selling price of goods, there have been obvious changes in the rate of increase. The rise in prices has also had a great negative impact on residents' lives. Whether it is travel or shopping experience, there are great deficiencies. Many residents have also experienced tightening in their lives due to this inflation. The situation that caused Taiwan to have such symptoms is inseparable from its economy, currency storage situation, and the influence of other countries' economies.

With the spread of the global epidemic, the global economy is also in a downturn, and many industries have experienced stagnant development. In order to keep its country's economy in a stable direction, the United States Development, continuous printing of money, and this situation also leads to inflation. Because the United States is the world's largest economic power, and its U.S. dollar is the world's common currency, the U.S. dollar held by countries around the world has become worthless. The more dollars you have, the greater the inflationary pressure it will bring, and small provinces like Taiwan are no exception. Affected by this international environment, prices in various cities in Taiwan are rising rapidly. The Taiwan dollar is also affected by this situation and is in a state of depreciation. Coupled with the continuous export of foreign exchange, the depreciation of the Taiwan dollar has further increased. Therefore, inflation has a very negative impact on local life and economy.

The negative effect of inflation will make many people unable to afford things. Under the adverse effects of inflation, it becomes increasingly difficult for many people to achieve their original goals. Although it has provided the greatest support to the economic development structure of society, this inflation also prevents various effective resources from being allocated to these people, making it difficult for these people to achieve their goals of traveling, buying cars, and buying houses. The living conditions of some people may be more difficult. The limited currency may not even have enough money to buy a bag of rice or a piece of bread. Affected by inflation, these people eventually become homeless people on the streets, and they have no place to display their talents. In places where people cannot earn limited money to improve their lives, inflation has a very serious impact on residents' lives.

It is difficult for Taiwan to improve this situation on its own. In addition to the corresponding subsidies provided by the Taiwan government, countries around the world, especially superpowers like the United States, control the export of currency and effectively Only by controlling the occurrence of financial crises can we avoid such incidents. After all, the outbreak of World War II was caused by a financial crisis caused by inflation. In order to avoid an economic crisis in their own country, many countries introduced the risks caused by inflation to other countries. This approach was harmful to others and not self-serving. Therefore, various measures must be taken to stop such behavior to ensure that the impact of inflation can be minimized.