China's Economic Fluctuations, Characteristics And Monetary Policy Adjustment,

There exist four phases in the economic development of any contries in the world, namely, economy expansion, economy contraction, economy recession and economy revorery, the occurrence of which make the economic functioning take on the feature of cyclical fluctuations. It has been regarded by economists as one of the most important aspects in their studies over the past 200 years.Economy fluctuation is an economic functioning formation during the economic growth of a country, upon which economists in western countries and China have different definitons. However, they share the same idea that economy fluctuation can be referred to as economy cycle only when it is manipulated by a fundameatal law and occurs in cycles. Since China was founded 50 years ago, the annual rate of economic growth has reached 8 per cent, it not more, but this high speed of development is achieved under the circumstances which are extremely unstable .And the vehement intensity of the "expansion-contraction" movement in fluctuation of economic development surely exert a negative effect on the development of economy as the result of the discrepancy of intensity. Therefore, this paper, based on the study of China's economy fluctuation together with the control of the macroeconomy governed by central bank to explore both the economy fluctuation and the regulating functions of monetary policy in our country, aims at dealing with the characteristics and causes of our country's economy fluctuation and how central bank can take effective measures to ensure the stable growth of economy and reduce the negative effect it has on the national economy. This program is very dynamic, conprehensive and broad in vision especially in the special environment in which China is undergoing the economic transiton and structures' reform.The paper firstly employs the "Cyclical Comparison and Moring Average Method" to survey and determine the economy fluctuation cycles of macroeconomic norms during the period from 1953 to 1999. secondly, in order to make clear the key role played by monetary policy in the process of macroeconomic control, empirical analysis from the historical and statistical perspectives is involved in invertigating the characteristics and causes of our country's economy fluctuation and operating mechanism as well as such serial matters as how central bank regulates the economy fluctuation by empolying monetary pllicy.