留学生经济学论文代写Existing problems and Solutions of China's Macro-economy Policy
China is turning from centrally planned economy country gradually to market economy country, it is still far away from establishing market economy system and it will last for a long time. If we solely use price index and other economic indicators which were adapted to western developed capitalized countries and their mature market economy to evaluate China's macroeconomic situation and to make judgment, maybe it can make sense to some extent, but there must be some deviations. So China's macro-economy should be regulated based on its current situation.
Economic operation data of last 5 months in this year indicates that the uncertainty factors if international financial crisis have almost been eliminated. China's macro-economy entered the track of normal development again. However, economic development is a dynamic process, the old elements eliminated, but the new factors will generate, especially nowadays, under the pressure of inside and outside China, it is important to make a correct macroeconomic policy. I list 3 of them which I think is not perfect and try to analyze it.
In 2009, Central Bank implemented the loose currency policies appropriately, appropriate increased in money, credit volume and maintain the banking system. Because of the extremely easy monetary policy, different kinds of loans increased by 8.92 trillion, compared to last same period, it increased 5.26 trillion. Under such monetary policy, large sum of currency flows into speculative blunders. This caused the real estate, gold and other investment goods’ price soaring up. Particularly, in the real estate field of 70 big cities, the price of house increased 16.9% over the same period last year. In the frontline city such as Beijing and Shanghai, it’s largely more than that. And in last year, growth of GDP in the four reasons is 6.1%, 7.9%, 8.9% and 10.5% respectively. However there still are 1.5 billion people live under the international poverty line. It seems that the GDP keep sustained growth, but Chinese economy is still far from the high-point. Overemphasize GDP is definitely wrong, for example, it will cause competition of each province. In addition, we cannot ignore the real estate’s contribution to GDP. In 2008, GDP of An Shan is 158.5 billion and half of it belonged to the real estates. In 2009 from January to July, An Shan invest 10.83 billion in real estates and ranked No.1 of Liao Ning province with the growth of 160.1%. Actually, GDP（Y） is divided into four components: Consumption(C), investment (I), government purchase (G), and net exports (NX). Just as the formula：Y=C+I+G+NX. As we have seen, GDP measures the total spending on goods and services in all markets in the economy. If total spending rises from one year to the next, one of two things must be true: the economy is producing a larger output of goods and services, or goods and services are being sold at higher prices. But in China, GDP cannot truly reflect the market value, because our economic system is diseased. No matter what kind of policy and what is the main part, its ultimate aim is to make people satisfied. In fact, we should focus on the structure and quality of GDP rather than its expansion of numbers. To see whether the quality of national economic development has improved or not, optimize and upgrade economic structure is the point.
According to high housing price, the government began to offer economically affordable house. As reference to the principle, economically affordable house is under preferential government policies, and controlled by constructed standard and targeted to ensure the implementation of preferential policies to truly low-income housing families. It was said that all supply processes are fair and just, open and transparent. But the truth is most buyers are still rich people, even the officials, poor people cannot afford those economically affordable houses. In the housing estate yard parked the private car rather than the bikes. Just as our teacher Mr. Sun said that in fact, to stimulate consumer spending is not to lower down the price. On condition that raise national income, and then raise housing price softly, give investors the chance to make some profit. Only then the real estate can develop healthily in a long run. At the same time, government should keep some houses to rent to poor people at very low price. The government should and need to spend and invest some money for people, even the economic deficit occurs. A government budget deficit represents negative public saving, it reduces national saving. Thus, a government budget deficit reduces the supply of loanable funds, drives up the interest rate, and crowds out investment. So this is time for our government to invest more money on poor people and infrastructure construction. In addition, introduce the ideas to them: if they are really poor, they don’t have to buy it, to rent also means to own. In Chinese traditional concept, people must has / is own house, must own a land. Or people will have no social state. In fact, there is no meaning to pay all life’s money and even run into debt just to buy a land for 70 years. Pay the rent every month would be economical and practical for poor people, and their quality of life will also be improved. When these poor tenants earn enough to reach the government subsidies, then the government can take back the low-rent housing gradually. It’s absolutely a win-win policy.
In conclusion, Chinese government should adjust its monetary and fiscal policy in response to the social problem. As a invisible hand, macro-control the money supply, interest rate, people’s demand and so on in time, precisely and correctly is more and more important and urgent.