The Livelihood Of The People: "taming Inflation" And "growth" Balanced Fulcrum

At present, China’s macro economy faces a more complex environment, on the one hand, to produce the inflation factors still exist, inflationary pressures are still more serious, on the other hand, the rate of economic growth is facing downside risks. From the perspective of people’s livelihood, the occurrence and worsening of inflation rising cost of living of residents, reducing the real purchasing power of the currency, thereby reducing the real income of the residents, so that residents generate discontent and waning consumer confidence, so to stabilize people’s livelihood requested that inflation governance is imperative. According to the analysis of the theoretical and practical experience, inflation and economic growth in the short term, positively correlated, so take a tightening of macroeconomic policies will inevitably affect economic growth, economic growth is a prerequisite for development of people’s livelihood and material basis for the reform and opening up greatly improved in China since the standard of living are based on a factual basis for rapid economic growth, so if the slowdown in economic growth, stagnation or even recession will lead to the decline in enthusiasm for production, market shrinking, unemployment and other phenomena, so that the residents income reduce or even loss of income sources, to a serious deterioration in people’s livelihood, and development of people’s livelihood and ensure economic growth. Such macro policy-making encountered in the people’s livelihood objectives "controlling inflation, to the bubble" and "maintain growth, anti-down" dilemma. Crack this dilemma that is, how to ensure economic growth, control the price level is the focus of policy attention, the main thrust of this paper.This paper introduces the livelihood-related economic indicators such as income, consumption, etc., from both theoretical and empirical focus on the impact of inflation on people’s livelihood, economic growth on the role of people’s livelihood as well as inflation and economic growth, to explore and analyze people’s livelihood, the balance on controlling inflation and ensure economic growth. Can be seen by studying the people’s livelihood in the center of controlling inflation and stable economic growth, the end-result of the policy objectives of the dilemma, and people’s livelihood can balance the policy objectives, is to control inflation policy implementation "short", that is in a tight relatively loose in order to promote people’s livelihood as the focus of fiscal policy, monetary policy can be complemented by the implementation of the one hand, the buffer to tighten monetary policy impact on the economy, the other hand, to protect the livelihood of the people, to ease the public discontent, and to improve residents tolerance for inflation, allowing the economy to achieve a stable landing. To find collaborative path of people’s livelihood and economic growth and control inflation and maintain growth "policy point of balance of theoretical and practical significance to crack the dilemma of short-term policy options.Chapter1of this paper is the relationship among inflation, livelihood and economic growth theory;2,3,4, respectively, analyzed the relationship between China’s economic growth and people’s livelihood, the impact of inflation on people’s livelihood as well as inflation and economic growth relationships, including the general mechanism analysis and empirical research; Chapter5of the2000-2010Provincial Panel Data on the relations between empirical study and sum up the people’s livelihood "balancing role"; Chapter6, make conclusions and make policy suggested that people’s livelihood as a point of balance is the key to crack the policy dilemma.