China's Deflation Theory Thinking

Deflation has been a new problem in the motion of macro-economy in our country since the mid-1990s. The existence of it affects not only the sustainable development of our socialistic economy, but also the further improvement of Chinese people's living conditions. So there are dual meanings on theory and practice to make research on the problem of deflation.Starting with the explanation for the definition of deflation and standard of judgement combining with the domestic and abroad factors, the article makes a thorough analysis on the current situation about deflation and its causes. Furthermore, on which basis,some measures on the problem how to solve China's deflation have been put forward. The article is divided into the following five parts:Part I .The deflation 's definition is put forward on the basis of analyzing various abroad and domestic ones. Combining Chinese particular conditions,the article raises the standard of judgement .It is a pluralistic standard that should be accepted .Part II. Some general causes about deflation have been analyzed. Having different civil conditions,different nations have different causes forming deflation. But the common causes, generally speaking .are concerned about policy factor, inadequate effective demand, overproduction and the effects of external factors.PartIII.Having analyzing general causes about deflation ,the article emphasizes on the analysis of the causes about deflation of China in recent years. The article argues that there are two factors, domestic and abroad , causing the deflation. Of them ,unbalance of quantity of supply-demand is the profound causes.Part IV.In this part ,the article tells the current condition about deflation and its trend in China .The article points the problem concerning current positive financial policy solving deflation and the ways how to perfect them. Then a comprehensive measure solving China's deflation isput forward. That is to modulate economy from two sides of supply-demand by connecting short-term and long-term policies.Part V .In the end ,the article argues that ,as a basic economy phenomenon , deflation should be prevented in advantage on the long-term perspective. To our nation, not only supply-demand , but also guideline reform should to be paid attention for preventing deflation.The new ideas:(1) On judging the standard by the currency deflation ,point out all kinds of standard,so enrich deflation of theory.(2) Analysis cause of formation of currency deflation,we start with cause of formation of currency generality.Set forth producing some reasons of our country's by linking outside with inside.It bring forth new ideas to produce some reasons of our country's by simple inside reason.(3) Administer our country's currency deflation by finance and monetary policy and point out a synthetical measure.