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To see the transformation of the Chinese government from the Chinese transition period the previous inflation

Author: ZhanXin
Tutor: LuZhaoWang
School: China University of Political Science
Course: Administration
Keywords: Inflation With economies in transition Government policies Government Transformation
CLC: D625
Type: Master's thesis
Year: 2009
Downloads: 251
Quote: 1
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Abstract


Since China’s reform and opening up, China’s economic system has experienced the transition from the planned economy to the market economy. During this period, China’s economy developed rapidly, people’s living standard improved and the market economic system became mature gradually. However, due to the transformation of the economic system, and some domestic and international factors, five serious inflations had occurred during this transition period. From the beginning of middle of year 2003, with the increase of investment in fixed assets and the rapid growth of heavy industry, China’s demand on energy and raw materials expanded rapidly. This great increase in demand broke the supply-demand equilibrium of China’s economy. Three major price indexes rose significantly, especially the consumer price index. As a result, the inflation problem, once again became one of the biggest concerns of the government and the community.This thesis describes the economic phenomenon and the social and historical background of several inflations occurred since the China’s reform and opening up. Three major aspects: the general information of the several inflations, the Chinese government’s macro-control and the transition in the government role have been emphasized and discussed in detail. This thesis also presents a comparative analysis on the characteristics and the causes of the recent several inflations. It shows that the fundamental cause that influences the economic cycle is the inappropriate macro-control from the government. The Government mistakenly treated the“Economic development as the central task”as the“Government-led economy”, which seriously impeded the healthy development of China’s economy. Therefore, the occurrence of the inflations after the reform and opening up is inevitable.At present, China’s economy and society are undergoing a comprehensive and challenged transformation. It is time to change the government-led economic system to the market-driven economic system. An open, transparent, and effective service-oriented government is crucial and provides healthy environment for the continuous development of China’s economy.

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CLC: > Political, legal > China's political > Political system and national institutions > Local people's governments
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