SOUTHERN CROSS UNIVERSITY
ASSIGNMENT COVER SHEET
For use with online submission of assignments
Please complete all of the following details and then make this sheet the first page of
each file of your assignment – do not send it as a separate document.
Your assignments must be submitted as either Word documents, text documents
with .rtf extension or as .pdf documents. If you wish to submit in any other file
format please discuss this with your lecturer well before the assignment submission
date.
Student Name: Tao Junjie
Student ID No.: 22398091
Unit Name: Bconomics for Decision Marking
Unit Code: DCO10250
Tutor’s name: Peter
Assignment No.: Assignment 2
Assignment Title: Chinese government’s
macroeconomic
Due date: Sunday 12th April 2015
Date submitted: Sunday 12th April 2015
Declaration:
I have read and understand the Rules Relating to Awards (Rule 3 Section
18 – Academic Misconduct Including Plagiarism) as contained in the SCU
Policy Library. I understand the penalties that apply for plagiarism and agree to
be bound by these rules. The work I am submitting electronically is entirely my
own work.
Signed:
(please type
your name)
陶陶陶陶Tao陶
Date: Sunday 12th April 2015
Chinese government’s
macroeconomic
INTRODUCTION:
Nobody can deny the fact that economic development and GDP is
very important to our daily life. But, nothing is more important than
our health and living environment.
In my opinion, with the steady growth of China’s GDP, national
income and personal income are improved constantly. In our
country at present under the macro background of high-speed
economic development, we should restrain runaway inflation and
lower unemployment. We should pay more attention to the quality
of economic development. Use reasonable )scal policy and
monetary policy.
I think the economic development’s benefit outweigh the
disadvantages.
The government should expand employment, increase government
investment, tax cuts, stimulate consumption, so as to make the
economy better serve the people.
1 Moderate monetary policy:
(1)Flexible use of monetary policy tools to maintain appropriate
growth of money supply, timely adjustment of credit policy.
(2) Guide to the loan, promote the adjustment of economic
structure;
(3) To implementation of the financial stability plan, play the role of
monetary policy is to maintain financial stability; the four is based
on the development of money market, and actively promote the
reform of monetary policy tools, change implementation of
monetary policy from direct to indirect regulation and control
2 Positive scal policy:
(1)To improve the structural tax cuts, to promote enterprise
development and guide the residents’ consumption.
(2) Increase the income of urban and rural residents, and strive to
expand consumption demand.
(3) effort to optimize the investment structure strengthen weak
links in economic and social development.
(4) Further optimize the structure of expenditures, effort to protect
and improve people’s livelihood.
(5) Promote the adjustment of economic structure and the regional
coordinated development; promote the transformation of the mode
of economic development
BODY:
Ⅰ. Basic situation of China’s macroeconomic.
From 1978 to 2008, because of reform and opening up, Chinese
government vigorously develop the economy, GDP has maintained
an average of 9.8% pa for more than 30 years of rapid growth, the
CPI remain at about 2.2% and the unemployment rate has been
low, was about 4.1%. The government in order to stimulate
consumer spending and business investment, PBOC has kept a
relatively low interest rates, is about 3.5% to 5%. This leads to
public savings rate is reduced, the result is that they put the most
money for consumption and investment, a small part of the deposit
in the bank. Countries have been gradually increasing government
investment and the development of infrastructure construction, and
lower taxes, so as to achieve the aim of stimulating the economy.
Since 1978 our country’s economy shows a tendency of GDP
growth, but the rapid growth of the economy with the macro-
economic operation of two unstable factors: one is the price rising,
secondly, the employment situation is becoming more and more
serious. Especially in recent years, due to domestic liquidity in the
market, after years of currency more accumulation, in the mid –
2007, inflation is clearly shown. In 2008 the world economic crisis
happened. Gradually spread to various countries in the world, most
countries in the global economy is a5ected, China’s economic
growth slowed from 13.1% to 8.2%. The unemployment rate rose to
5.6%. Due to the government through monetary and )scal policy to
stimulate the economy, the domestic inflation rate rose to 2.8%, it
causes product’s price generally rise. In domestic and foreign
factors, especially the USA subprime mortgage crisis and the
domestic asset investment overheating, our country’s economy is
the trend of the development of the direction to cost-push inflation.
The inflation pressure and employment form under severe pressure.
Therefore, solving the problem of the high inflation rate and the
unemployment rate rose to deal with rising unemployment and
rising prices in China is of great signiticance.
Ⅱ.Evaluation of the macroeconomic situation related
variables:
1. Economic growth and GDP.
In macroeconomic analysis, GDP indicator occupies very important
position, has the very wide range of USES. Sustained, stable growth
in GDP is the government aimed to pursue goal.
Economic growth reffect a certain period of economic development
