Study Of The Underground Economy

After Second World War, Capitalism world was under an obsession of stagflation. Behind prosperous surface, productivity fell strangely. Thus 1970s, main capitalism countries began to study underground Economy.In practical respect, tax evasion and black market bothered market economy countries. The troublesome problem for governments is how to improve tax system. Thus, the reason for main capitalism countries put underground economy into important position is apparent.Spread of underground economy influence the whole economy environment. It cause loss of tax, distort society economy information, impact on resources collocate, accelerate capital flow Away, harm government impression.With China reform of economy system and fast developing of economy, different kinds of economy relationships become wiser and complex. Base on these reasons, it is necessary and urgently to study underground economy in order to find countermeasure. This thesis studies underground economy, especially harm of underground economy harm to China and how our government to deal with it.This thesis divided into four chapters.The first chapter is the definition of underground economy and significance of underground economy study. First, introduce different definition of authoritative thesaurus, and finally give the definition of this thesis. Then discuss the signification of underground economy study, and it is very significant to develop the study of underground economy in order to find out countermeasure to prevent, refrain and proper guide underground economy. It is very helpful to country hold correct national economy information in order to reduce mistake of macro economy decision-making. To show economic character is helpful for government to set down effective countermeasure.Chapter 2 studies the reason of underground economy appear and the...