Chapter 1020： Jiawu (1/2)

In a blink of an eye, 1894 came to an end. The Vienna government, which had been in deficit for a long time, finally got rid of its fiscal deficit this year.

What is embarrassing is that the main reason for the Vienna government to get rid of the fiscal deficit is not the increase in taxes for economic development, but the over-issue of currency.

With the joint endorsement of the European Union, the Vienna government issued more than 1.2 billion Aegis, which is slowly flowing into the market at this moment.

Although the money has to be shared with everyone, it is still the Vienna government that takes the bulk. Preliminary estimates are that after deducting printing costs and profit sharing, the seigniorage revenue belonging to the Vienna government is still as high as 780 million.

Compared with the normal season, the fiscal revenue in a year is more. If you still can't turn losses into profits, then it really doesn't make sense.

The alliance endorsement only stabilized the value of the Aegis currency, but the bad influence brought about by the over-issue of currency still exists.

According to the statistics of the Vienna government, the domestic inflation rate will be as high as 3 points this year. This is the result of not all the super-issued currency being flowed out, otherwise the inflation will be even worse.

If it is left in the future credit standard era, the inflation rate of 3 points will not matter at all, and inflation of 7 or 8 points will happen from time to time.

Inflation is happening all over the world, and no inflation is news. Even countries with more than double digits have maintained double-digit inflation rates for many years.

But now is different, the inflation rate in the gold standard era is minimal. Except for the massive influx of gold and silver in the sixteenth and seventeenth centuries, there was a wave of inflation. After entering the industrial age, there was very little big inflation.

The three-point inflation rate has already made the Vienna government nervous, for fear of causing the market to collapse.

For the national economy, inflation has increased the cost of industrial production, which is clearly detrimental to the export of industrial products.

Had it not been for the Vienna government to lend a large amount of Aegis, and the amount of consumption that was limited to the Shenluo, it would now be counterproductive to the export industry.

There are advantages and disadvantages, and if you take such a big risk, there will be corresponding benefits.

With this additional income, the Vienna government not only made up for the fiscal deficit, but also opened the ring railway project, and by the way also repaid part of the government debt.

The most important thing is to suppress the wave of revolution, contain the expansion of the economic crisis, stabilize the situation in Europe, and stabilize the European hegemony.

Just look at this year's report. The economic crisis broke out at the beginning of the year, and there was the biggest economic downturn since Franz succeeded.

In the first quarter, the curtain of the economic crisis was opened, and GDP fell by 8.7% compared with the same period last year;

In the second quarter, the economic situation deteriorated further, with GDP falling by 12.8% over the same period last year;

In the third quarter, the measures taken by the government began to take effect, and the economy showed some improvement, but GDP still fell by 10.8% over the same period last year;

In the fourth quarter, the European countries reached an agreement to jointly launch a ”water release” rescue plan, but the GDP still fell 5.1% compared with the same period last year.

Based on annual calculations, Shinra's economy fell by 8.93% in 1894. After all, it did not break through 10 points, and it controlled the single digits in the decline.

Unfortunately, the actual situation is more serious than this. The above data includes the already localized African territories in the calculation, diluting the decline rate.

If it weren't for the noble lords in Africa who were desperately engaged in construction, maintained rapid economic growth, and boosted economic data, the economic data of Shinra in 1894 would be absolutely touching.

In some parts of Europe alone, the GDP growth rate is definitely double-digit, but unfortunately it is negative. The specific data is-13.7%, which is simply appalling.

There is no way, this is the aftermath of the war. If the government does not take timely response measures, this number may even directly double.

Shenlu, who has a great family and a lot of business, is so miserable now, and other countries are naturally not much better.

Needless to say, the defeated France, the aftermath of the war continues. Compared with the pre-war, it was cut in half and cut in half, and then a 20% discount.

Do not say that the debt was repaid, and it would be good to be able to smooth the daily expenses of the government. So that from Carlos's leadership, has been fighting corruption until now.

According to estimates by the Vienna government, Armenia was the one that suffered the least loss in the economic crisis of 1894, which maintained positive economic growth, although the economic growth rate of agricultural countries was comparable to that of a snail.

Even Montenegro, which is an agricultural country, was not able to escape. Although the economic crisis did not follow, his own economy was too heavily affected by Shinra.

The economic downturn in Shinra has also greatly affected Montenegro's import and export trade, because exports account for a small proportion of the economy, and the economy has only declined slightly. It is estimated that the decline will not exceed 1%.

Secondly, the Nordic Federation and the Netherlands have made a fortune for war. In addition, their wealth is not weak, and they are far less affected by the economic crisis than other countries.

However, the economies of the two countries and Europe are too closely linked. There is a serious economic crisis in Europe, and they can only follow the crisis.

Affected by the economic crisis, even if there are not 10 points of GDP decline, eight or nine points are still indispensable. It looks similar to the data after Shinra's whitewash.

Then there is the Russian Empire. There is no doubt that the Russians were dragged into the water by Shen Luo.

The economic ties between the two countries were too close, the economic crisis broke out in Shinra, and the Russian industrial raw materials were also unsalable. Stock market crashes, layoffs, and bankruptcies are also indispensable.

If there are only these, it can only be regarded as a drizzle of economic pain. Unfortunately, revolutions broke out in Poland and Bulgaria, and the guerrillas in Central Asia followed suit.

If the tsarist government takes the correct economic measures in time, the situation may not be so serious, but they have done nothing.

All the factors were added together, and in the end the Russians handed over a slightly better answer sheet than in Shinra, and a drop of seven or eight points was indispensable.