During The Transition Period Of China's Underground Economy Causes

During the Second World War, there has been a high tide of the study of underground economy. In 1970s it attracted the western countries attention again. In 1970s, many western countries were puzzled by high-unemployment, low-increase and high-inflations.But in 1980s , high-rates and huge financial deficit became another main problem. The practical investigated result of macro-economy is quite different from the traditional economic theories. So it made economic circles began to examine the traditional economic theory again and the study of the underground economy provides another new angle of view for solving the stagflation in western countries.Underground economy is an economic activity field which hasn't been recognized completely but draw more attentions day by day. It involves a wide range of contents and circles. The common characteristic is that the underground economic activities escaped from government and the supervision of the public by every possible means. With the gradual expansion of every country's underground economic scale and the developing speed, the negative influence highlighted day by day. It deeply influenced the rational division of social resources, mislead macro-management and policies of national economy and destroyed the normal public order.Nowadays our country is at a period which the old system and the new one exchanged, so during the economic development, it is inevitable that emerged some weakness and loopholes. All of these provide more spaces for the underground economic activities' propagation and activeness and influenced the development of the whole national economy. Combing the special condition of our country , from the angle of analysis of our system, this thesis have a simple try to study underground economy.The paper is composed of three chapters.Chapter one, the introduction about the theory of underground economy. On the basis of the underground economy's meaning, definition, and classification . It sets forth the underground economy's important influences on macro-economy.