The Analysis Of The Interest-ficc Consumption Cross Pciod Modcl

Since the reform and open policy, our countrys economy hasdeveloped rapidly. Now, our country has overtaken Japan to becomethe worlds second largest economy. But, at the same time, Chinasdomestic economic structure is becoming more and moreunreasonable. Provided by the decreasing demographic dividend, thestrong growth once backed by export has passing away. The financialcrisis which had caused global economic recession also appears inChina, and shows some signs of shrinking. On the other hand, in recentyears, deficiency in our country whose development is driven byinvestment is also began to tell. Two of the three engines to develop arenot as good as them used to be. Then we turn our eyes on domesticdemand,which turn to be a hot debate of how to enhance thedomestic market.There is no doubt that Chinas domestic demand is too low. In2010,Chinas total consumption accounted for only38%of its GDP that ismuch lower than70%in the western developed countries. So, how toboost domestic demand and economic development is the issueexperts and scholars are studying. And that is also the main studydirection of this paper.This paper argues that a consumer credit research is of greatrealistic theoretical and realistic significance. First, development ofconsumer credit in any society is a civilized mirror of that society.Second, and the most important is, consumer credit is of great efforts tospread as lubricant makes the economy as to a benign cycledevelopment state. Further to said, manufacturers have the motive toexpand production manufacturers. In an ideal consumption creditmodel of economic development, consumer credit is good both forconsumers and the manufactures. Analysis of consumer credit has not only just theoretical significance,but in reality the meaning of consumer credit is to accelerateconsumption and product circulation. A little bit of a consumer creditand generalized, banks provide auto loans and housing mortgagesloan, etc. In addition, between manufacturers with each otherreceivable accounts payable, many businesses are every once in awhile a settlement. We can see that the reality of consumption creditdeposit has its rationality and role. This paper is the basic model of theconsumers across the period is the optimal choice model. Then, thispaper discusses the manufacturer willing to provide consumption creditconditions. Finally, combined with knowledge of the game theory, theauthors deduce the cross period under consumption model, theintroduction of consumption credit will help the consumption of theexpansion, the production of acceleration, and derived thedevelopment of the economy.This paper has come to the conclusion mainly includes: cross periodmodel, the introduction of the consumer credit, consumercircumstance will get better; Although manufacturers for consumercredit and provide interest-free of the current period, but theconsumers spending rise and new consumers to access, the two factorsalso make the interests of the manufacturer to get more. In a closedeconomies, manufacturers and consumers situations become betterbecause of the introduction of consumer credit and, this helps theeconomy period and the development of circulation quantity is added.In view of the consumer credit in foreign countries are perfect in thetheoretical research in this paper, the most references to foreignlanguage is given priority to, and more of the countrys economicproblems for reality reflected. Finally, this paper studies the consumercredit is still far from reaching a perfect degree, hoping subsequentresearch to continue to deepen the understanding of consumer credit.