Deflation And The Decision Of Economic Policy

As a given economic phenomenon, Deflation depicts a continuous fall in general prices. Firstly, It is a kind of monetary phenomenon, In the meantime, it is a kind of substantial economic phenomenon. Like inflation, deflation also has a self-tensifying machinery. It goes even farther than inflation in harmfulness. Meanwhile, its causes of formation are also complicated, this adds to the difficulties in understanding and administering deflation. So, this graduation thesis tries to gradually form a complete analytic frame on deflation through the analysis of its definition, causes of formation, harmfulness and measure, and deeply understand the kind of complex economic phenomenon. Otherwise, through this frame, the author also tries to analyze Chinese deflation from an actual angle.