China's Deflation

This paper mainly studies relation between deflation and the gap of savings and loan , relation between deflation and tax revenue. Firstly, the paper introduces definition of deflation, judge criterion and the effect on economy on the basis of the sdudy, The paper analysis the quantity relation between deflation and gap of savings and loan, and the quantity relation between deflation and tax revenue. And on the basis of quantity relation , the paper talks about how to decrease the gap of savings and loan, how to reduce the the supernormal increase of macroscopic tax revenue in order to relax development of deflation, relieve the unfavorable effect on economy development, enhance competion ability of economy. At last, the paper does qualitative analysis and quantitive analysis for next development deflation. Especially, the paper forcasts the development of deflation with time series knowledge and founds maths model. These are very important for us to do well future economy work.