A Study On Problems Of Inadequate Effective Demand In China

As a result of over 20 years' development,China has changed a great deal of in social structure and economic situation,particularly during 90's of 20th century.All these changes led to the entire transformation of market in the deeping economy. With the enhance most of the capacity of production.China undergoes insufficient supply to shrinking demand,therefore,it leads to the problem of effective demand deficiency which is becoming more and more serious in macro-economy.Since 1998,to accelerate the development of economy,Chinese government adopted a series of policies to enlarge domestic demand,but this has not resolved the problem of effective demand deficiency thoroughly.Particularly,consumption demand deficiency is still a outstanding problem in our economic development..The paper begins with the conception of effective demand. Then explains the historic course:from Say's Law to Malthus's Theory of Effective Demand and Keynes's Theory of Effective Demand,analyses the cause and the demand management in Keynesianist policies.After Keynes,the 'post-Keynesian leading economies',the 'post-Keynesian economies',the so-called 'Neo-Keynesian economics' has developed the Theory of Effective Demend in different point of views .Those analyses make the basis for how to enlarge effective demand.However, specific policy is affected by other factors,such as economy system and economic situation.After summarizing the experiences and lessons of American practice of enlarging domestic demand,we can get some apocalypse.By the review of situation of Chinese demand deficiency,we can generalize the causes. At last,the paper analyses the macro-policies that China has carried out in these years,and appraises the effects, then puts forward more advices and measures.