China's Deflationary Impact On The Factors And The Policy Orientation Of The Governance Analysis

On the base of western economic theories, this paper uses positive methods to study the main mechanisms of deflation in our country and the relewant policies to control economy.This paper first studies the various explanations of deflation'of the main western economic schools. It points out the disadvantages of using western economic views to explain the speciality of deflation in China. According to this, depending on a lot of positive studies, it puts forward that the main reasons of deflation in our country are not only on the lack of effctive demand or the excess of both aggregate supply but also on the common results of both aggregate demand and aggregate supply. Then it explains it in a diagram. As to the controling policies, it utilizesthe relating international economic theories to analyze the macroeconomic policies. It gives the causes of why the government uses active fiscal and monetary policees and put forward detail policies to control our economy. Besides, it uses relervant theories of different economic shools such as Rational Expectstion School, Monetary and Supply. Finally, it puts forward detail measures to control deflations in our country.