The Initial Investigation For The Macroeconomic Balance Condition

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 20^th century. All these changes led to the entire transformation of market in the deep 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.The paper points out the principle of the macroeconomic balance as a starting point, and says the importance of the mutual relation of the supply and demand. It follows by the consumption demands theory of Sismondi and Malthus, and focuses on the difference between them and comparison, then evaluates them. Their theories include some insights, and not only exceed their predecessors, but also beyond other contemporary scholars. Throughout the nineteenth century, the consumption demands theory did not arouse much attention. This is because the economic crisis has not development to be not controlled, and the most bourgeois economists confidence on economic growth. On the other hand, because Sismondi representatives for the petty bourgeoisie, and Malthus representatives for the nobility, which can not be accepted by the bourgeoisie. So their theories were left out in the cold for the long time. Until the early 20th century, the consumption demands theory has been generally recognized by the western economists through Keynes. Keynes inherited their thinking, and pointed out the principle of the effective demand, and the consumption demands theory could be developed.The relation between accumulation and consumption is the important relationship in the macro-economics all the while. Whether it is capitalism or whether it is socialism, the market economy would make the nation much mightiness. Their nicer relationship will be propitious to the balance and tranquilization of the macro-economics, and actively promote financial increasing. Taking into account different systems and Western cultural differences, we should learn from what attitude to take, "to its trough husk, elements", to take an active fiscal policy and a stable monetary policy , and lead our healthy macroeconomic operation.