To what extent, should the Chinese government intervene in economic development and implement macroeconomic control?
To what extent, should the Chinese government intervene in economic development and implement macroeconomic control? Evonne
Introduction
In recent years, the Chinese economy has developed rapidly. More attention has been paid to the intervention of the Chinese government in the economy. From the economic view, the function of the Chinese government in the economy is mainly to make use of economic law, administrative means and macroeconomic regulation and control. However, the Chinese government prefers to use large quantities of macroeconomic policies to control the economic market. Ding argues the Chinese government enjoys more macroeconomic control than any capitalist social democracy ever has (Ding, 2009, p.2). This is due to two main reasons. The Chinese market economy transformed from a long-term planned economy. The government 's economic plans, like the five-year plan, are still in use. Moreover, China implements a one-party state and any economic decisions made by the Chinese communist party are compulsively implemented. Nevertheless, macroeconomic control should be properly used in China. The essay will first define Chinese macroeconomic control and reveal its extensive use in China. Secondly, it will also argue macroeconomic control has had positive influence on handling the economic crisis and inflation. Then, it will discuss risks and problems of the Chinese macroeconomic control in real estate. Finally, it will suggest the proper macroeconomic control and the free development of economy should be balanced in China.
Definition
Macroeconomic control is policies and actions implemented by governments to control the operation of the market economy. In the market economy, supply and demand of goods and service is influenced by the law of value and the free market mechanism. However, it will also trigger inflation or economic recession. This periodic fluctuation has a significant effect on social resources and productivity. Thus, macroeconomic
Introduction
In recent years, the Chinese economy has developed rapidly. More attention has been paid to the intervention of the Chinese government in the economy. From the economic view, the function of the Chinese government in the economy is mainly to make use of economic law, administrative means and macroeconomic regulation and control. However, the Chinese government prefers to use large quantities of macroeconomic policies to control the economic market. Ding argues the Chinese government enjoys more macroeconomic control than any capitalist social democracy ever has (Ding, 2009, p.2). This is due to two main reasons. The Chinese market economy transformed from a long-term planned economy. The government 's economic plans, like the five-year plan, are still in use. Moreover, China implements a one-party state and any economic decisions made by the Chinese communist party are compulsively implemented. Nevertheless, macroeconomic control should be properly used in China. The essay will first define Chinese macroeconomic control and reveal its extensive use in China. Secondly, it will also argue macroeconomic control has had positive influence on handling the economic crisis and inflation. Then, it will discuss risks and problems of the Chinese macroeconomic control in real estate. Finally, it will suggest the proper macroeconomic control and the free development of economy should be balanced in China.
Definition
Macroeconomic control is policies and actions implemented by governments to control the operation of the market economy. In the market economy, supply and demand of goods and service is influenced by the law of value and the free market mechanism. However, it will also trigger inflation or economic recession. This periodic fluctuation has a significant effect on social resources and productivity. Thus, macroeconomic
References: Ding, Xiaoqin (2009). The socialist market economy: China and the world. Science & Society, 73(2), 235-241 Zhang, Chengsi (2011). Inflation persistence, inflation expectations, and monetary policy in China. Economic Modelling, 28, 622-629 Yang, Jiawen (2011). China’s international coordination in policy response to the 2008 financial crisis. The Whitehead Journal of Diplomacy and International Relations,12(2), 73-88 Zhou, Jianli (2008). In the current real estate macroeconomic regulation and control should pay attention questions. Asian Social Science, 4(4), 114-117