A Study On Coordination Of China's Macro-Economic Policies Under Problem That Investment Does Not Reflect Consumer Demand

China is facing two serious problems which are economy's overheating and inflation. It has become a common knowledge that these two problems originates from the fact that the pattern of investment does not reflect the consumer demand. Under this background, this thesis comes to a conclusion that the unbalance is macro-economic policies'mismatch, through analyzing the relation between consumption and investment since 1978.In detail, this thesis first summarizes theories on the coordination of economic policies and the adjustment of the relation between consumption and investment. Then the author argues that China's macro-economic policies'mismatch is the key reason leading to unbalance between consumption and investment, which is called investment-addicted economic growth, by analyzing from two dimensionalities, the time and the space. The thesis next introduces Japan and other countries'experience about coordination of economic policies and evaluates China's since 1978. The author argues that China's economic policies have several weaknesses, such as the government's over-controlling, wrong economic growth pattern and unqualified coordination. Based on this, the author points out that the strategy should be marketizing quickly, restricting the government properly, overall planning for consumption, investment and net export, promoting comprehensive and balanced development between both urban and rural areas, and smoothing the conflicts as carrying out different policies. As for policy suggestions, the author believes it would be helpful that the government carries out a combination of an expansionary fiscal policy and a tight monetary policy; and adjusts the structure of the fiscal expenditure, especially increasing the supply of public goods to the rural area. Meanwhile, the government should use other kinds of policies concerning exchange rate, industries, foreign trade and income, to balance the inner and outer economy, to adjust the structure of supplying and income, especially to reverse the economic dualism.