Market economic performance could not do without macroeconomic regulations and this is the important lesson China draws from three decades of opening and reform. Current new regulations are confronted with new problems concerning debates over priority on economic growth or priority on containing inflation. The present paper argues that the two are actually one. Slower growth at 9% could not be viewed as plummeting; but it is difficult to keeep inflation rate below 5%. So a combination of measures has to be utilized including planning, plotting and moderately tight monetary and fiscal policy to ensure steady and relatively quick growth and controlling inflation while preserving the interests of the middle and lower incomers.
|On Macroeconomic Regulations
|Published - 2008