To resolve the inflation caused by overheated economy in 1992, China executed Macroscopic Control Policy to stabilize the fluctuation of price standard in 1993. It seemed to achieve the effort of controlling inflation. However, because of longtime Macroscopic Control Policy after Asian Financial Crisis, it resulted in negative impacts. CPI in China has been minus quantity for 39 months from October in 1997 to December in 2000. And CPI turned plus into minus from April in 1998 to January in 2000. And CPI turned plus into minus from April in 1998 to January in 2000. The growth rate of RPI is -2.6% and that of CPI is -0.8% in 1998. It declined to -3.0%(RPI) and -1.4%(CPI) in 1999. The growth rate of GDP has fallen down since 1992.
The main purpose of this paper is to explore the reason of the deflation late in 1990 in China. I want to find out why deflation was happened in china? What is the main cause of deflation in china? What are the impacts and shocks to china economic growth by these causes? How are the impacts and shocks to china economic growth by these causes?
The whole supply and demand and money contraction resulted in the downfall of GDP and CPI. To prevent the phenomena of overheated economy since 1993, most of investment moved away China because of Macroscopic Control Policy. Under this kind of situation, we couldn¡¦t say that the investments were excess. Therefore, the main reason isn¡¦t prices dropping caused by too much supply. China continued Deflation Policy after Asian Financial Crisis in 1997, so the speed of economy development decreased slowly. It also reduced the whole consumption, public spending, investment export, and money supply and demand. The effect of negative development resulted in the deflation of economy development.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0618105-204651 |
| Date | 18 June 2005 |
| Creators | Cheng, Tung-hsu |
| Contributors | none, none, none |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | Cholon |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0618105-204651 |
| Rights | unrestricted, Copyright information available at source archive |
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