Western economics has various definitions of inflation, mainly because of different angles. In order to facilitate analysis and understanding, we choose the theories of American economists Ledreux and Parkin. Inflation is a process of rising prices, that is, the process of currency depreciation. Because in the economic model of the community, the nominal price is constant, which means that the currency continues to depreciate. If the currency is allowed to depreciate, the attraction of community points to page users will be greatly reduced, which will lead to a decrease in social supply. In order to solve this problem, the community's countermeasure is to use the high hit rate and high return rate of integral betting to promote currency appreciation, and solve this problem through this hedging. The so-called stagflation refers to the phenomenon of stagnant production, increasing unemployment and high price level in economic life. Is the result of the long-term development of inflation. In 1950s and 1960s, western countries implemented inflation policies, which played a certain role in promoting the economy. Inflation at that time was generally characterized by excessive demand, insufficient supply of goods and rising prices. Stimulated by demand, economic growth and employment can maintain a high level. However, since the 1960s and 1970s, the stimulating effect of inflation has weakened, while the negative impact on the economy has gradually increased. In the end, there was a stagflation situation in which the economic growth rate decreased and the unemployment rate rose, but prices still rose. In this regard, various schools of western economics have made various theoretical explanations. Among them, the monetarist represented by Friedman directly criticized Keynesian inflation policy, arguing that stagflation is the inevitable result of long-term implementation of inflation policy. Stimulating the economy by increasing effective demand is essentially excessive currency issuance, and the natural unemployment rate in the economy cannot be eliminated through currency issuance. In fact, if a country's economy is in a state of inflation for a long time, the growth rate of people's income will be slower than that of prices, real wages will fall, and the purchasing power of society will shrink, which will inevitably lead to insufficient demand, backlog of goods and decline in production; When the domestic price level is higher than the international market level, the foreign demand is also declining; As a large amount of production capital turns to commodity speculation under inflation, the actual production investment decreases. While production declines and the total social supply decreases, the monetary surplus caused by expansionary fiscal and financial policies will not automatically withdraw from circulation, but will cause strong inflationary pressure on the market by accelerating the circulation speed, and the price increase is difficult to control. In this case, if austerity measures are taken, production will be further weakened, and the supply of goods in the market will be further reduced. The austerity policy will eventually achieve the purpose of shrinking the money supply, and its speed is far less than that of the stimulus policy. So stagflation will be difficult to solve quickly. This situation has lasted for more than ten years in many countries, which has seriously affected the normal development of economy and society. Inflation is a general and sustained rise in the price level. According to the severity of inflation, it can be divided into three categories: first, creeping inflation, also known as moderate inflation, which is characterized by low and relatively stable inflation rate. The second is to accelerate inflation, also known as Mercedes-Benz inflation, which is characterized by a high inflation rate (generally above double digits) and is still increasing. Third, hyperinflation, also known as hyperinflation, is characterized by a very high inflation rate (the standard is that the monthly inflation rate is above 50%) and it is completely out of control. There is also a kind of suppressed inflation, also called hidden inflation. This kind of inflation means that there is inflationary pressure in the economy, but because the government has implemented strict price control and rationing system, there is no inflation. Once price control and rationing are lifted, serious inflation will occur.