A Positive View of Inflation: Encouraging Industrial Transformation and Innovation Investment

Originally published 2021-10-14Robin’s commentary (as of October 2021)

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Collected in Robin Shen’s Field Notes · Content type and attribution are shown above

English translation of the Chinese post originally published 2021-10-14. Translated 2026-11-05 with AI assistance. Historical figures and claims have not been updated or independently verified. 中文原文

Reading guide

Robin argues that low interest rates, inflation, and wages, alongside exchange-rate controls, have prolonged the survival of firms needing to upgrade or exit. He sees a positive role for inflation and normalizing rates, exchange rates, and prices in stimulating transformation. Major improvement, he believes, requires innovation and investment, directing a small portion of capital toward early-stage venture opportunities and future trends.

Key points

Low rates, inflation, and wages, with exchange-rate controls, can prolong firms needing to upgrade.
Normalizing rates, exchange rates, and prices may stimulate transformation.
Robin sees innovation and investment as the route to major improvement.
Allocate a small portion of capital toward early-stage venture investment and future trends.

Trees at different stages of growth with connected roots on cream paper, suggesting patient cultivation and lasting value. — Venture capital & investmentThematic illustration · AI generated

Full text — English translation

I Personally Think Inflation Can Be Viewed Positively Taiwan has long maintained low interest rates, inflation, and wages, high housing prices, and exchange-rate controls. Firms needing to upgrade—or be eliminated—have survived in an intentionally cultivated environment of low pay, restrained utility and fuel prices, a depressed exchange rate, and low rates. Normalizing interest rates, exchange rates, and prices might stimulate long-term development and industrial transformation. Fiscal and monetary policy have limits. I believe major improvement in Taiwan requires innovation and investment: directing a very small portion of capital into early-stage venture investment and positioning for future trends.

These articles are personal notes, book excerpts, and collected reprints. Figures and events reflect the time of the original publication, are not current information, and do not constitute investment advice.

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