The Essential Connection Of Business Cycles And Market-oriented Economy---the Reason Rerecoganizing To Forming Reason And Influent Factor Of Business Cycles

In connection with the different opinion on the business cycles existing in present e- conomic circles, the essay re ?analyzed and defined the conception of the business cycles, then further probed into the basic cause of the business cycles and the major affecting fac- tors to them. In result of such analysis the essay came to the conclusion that there is the intrinsic connection between the business cycles and the market economy. Intrinsically, it is the market mechanism that is the inner power causing the business cycles, and the business cycles are the outer reflecting of the former. Since the acting de- grees of the market mechanism in market economies differ from each other, the character- istics of the business cycles diversify according to different market economics and the evo- lution of the world market economy. In regarding to the affecting factors, the government intervention is the most primary one, which is contributing to the better development of the macro ?economy and will continue its effect on the business cycles. Analyzing the fluctuating character of China?s macro ?economy in the planned econ- omy times, the essay further defined that there are no business cycles without the effect - ing of market mechanism. With the better mature and perfect of China?s market mecha- nism and market system following its opening and reforming China?s macro ?economy has shown cycle ?fluctuating character gradually.