Zhou Xiaochuan: Inflation can be considered from a more comprehensive and rich perspective

　　China News Service, Beijing, November 29 (Reporter Xia Bin) Zhou Xiaochuan, President of the China Finance Society, said in Beijing on the 28th when attending the "2020 China Finance Society Academic Annual Meeting" that at present, as a feedback variable of monetary policy, inflation indicators can also be used. Consider from a more comprehensive and rich perspective.

　　Zhou Xiaochuan said that first of all, from a long-term perspective, the price changes brought about by technology and so on are very large.

For example, the price of cast screens used on site may be unimaginable in the past, but now the prices have become affordable, including the TVs, mobile phones, and computers used by people in their homes. The prices have fallen very fast.

　　Secondly, the service industries such as education, pension and medical care take up an increasing proportion, and their prices have also undergone great changes.

　　Third, the rapid increase in the global population and the process of urbanization have led to a shortage of urban land, a sharp increase in land prices, and large changes in housing prices. How to reflect this change in inflation and price indices is a major controversy.

　　Zhou Xiaochuan further stated that the traditional inflation measurement mainly faces controversies and challenges in four aspects.

First, the current price index inflation rarely includes asset prices, which may bring a certain distortion, especially in the long-term comparison; second, what kind of income is used as the expenditure basket for calculating inflation; Third, the impact of labor expenditure measurement on inflation; fourth, the issue of comparability (benchmark and frame of reference).

　　"People's behaviors based on inflation expectations, including changes in their spending behavior, need to do some detailed and in-depth research in order to have a deeper understanding of the relationship between monetary policy and inflation, inflation expectations, and residents' spending behavior. Understanding and understanding." Zhou Xiaochuan said.

(Finish)