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Research On The Deflation Of Our Country

Posted on:2004-10-25Degree:MasterType:Thesis
Country:ChinaCandidate:H L ZhouFull Text:PDF
GTID:2156360122461148Subject:Political economy
Abstract/Summary:PDF Full Text Request
In this article, I first define the definition of deflation and how to know if the deflatio has arrived. I think deflation is that prices degrade for long time, and when prices decrease for six monthes, we can say that the deflation has come up. When the natural in flation rate or PPI have decreased for one year, we say, the deflation is to come and we should care about it. The deflation arrived in April 1998. Comparing with inflation, the deflation is more harmful to economy .The behaviors of the public in deflation time will degrade the deflation. So, governments should intervene the economy in time, or, it will lead to recession. What lead to the deflation of our country is that aggregate demand is short. The wealth gap being more widely leads to that the most of consumers have little money to consume, especially the consumers in the country. Other reasons of deflation is political ones and the financial crisis in the East-south Asia. In order to go out of deflation, we should accelerate the process of urbanization and become peasants into citizens.
Keywords/Search Tags:deflation, financial crisis, wealth gap, urbanization
PDF Full Text Request
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