帮写经济学assignment：Reform of north Korea's currency

o weaken the role of the market and strengthen the order of planned economy management. However, under the planned economy system, price changes lose flexibility and it is difficult to adjust the supply of commodities in the market. Under north Korea's way of rationing goods, the production of goods is often lack of motive power, and the phenomenon of insufficient supply often occurs. The introduction of currency reform, the adjustment of commodity prices, but the role of the market in adjusting the supply of goods, so when more and more people want to buy more goods, it drives the crazy rise of commodity prices on the black market, causing social and economic instability.

The monetary-reform reform has only raised people's incomes on the surface, but not fundamentally increased national output. Therefore, economic production still lacks impetus, resources cannot be rationally allocated, enterprises lack the sense of competition and enthusiasm for production, and people's living standards have not been improved in essence.

Politically, the use of force and the imposition of currency reforms has exacerbated popular discontent with the regime and increased social instability.

First, the most immediate effect is to cause rising prices and higher inflation. Due to the currency exchange limit, most people hope to spend the surplus money within the time limit, resulting in a sharp rise in prices. In the short term, people's living standards deteriorate.

This currency reform has discouraged businessmen and affected the development of trade. The government ordered the new money to be exchanged for old money, essentially nationalizing the private property of the more affluent merchants. This kind of behavior will dampen the enthusiasm of businessmen engaged in legitimate foreign trade and commodity business, and bring the north Korean economy back to the origin of planned economy.

Due to the instability of north Korea caused by the currency reform and the change of north Korea's currency exchange rate, the stable development of border trade is affected.

The July 1 reform in 2002 was called the starting point of the new era reform in north Korea, bringing about the transformation of the north Korean economic system. But the currency reform in late 2009 was designed to bring the north Korean economy back under the purview of planned economic management, which eventually led to further deterioration of the north Korean economy. Not long ago, Kim jong-il's visit to China attracted attention. One of his purposes was to seek economic assistance from China after the failure of currency reform. As north Korea's main neighbor, China should pay close attention to the development of future developments in north Korea and make various considerations according to its economic and political changes. At the same time, China should draw lessons from the reform of the DPRK and steadily push forward the reform and development of the Chinese economy on the basis of conforming to China's national conditions.