Liu Of The Big Economic Thinking And Policy Practice In Taiwan

The subject of this article is about Ta-Chung Liu’s economic thinking and policy practice. Ta-Chung Liu (1914-1975), an internationally renowned econometrician and one of the most accomplished economists in the study of national income, is not only academically accomplished, and he was committed to combine economic theory with economic practice and put forward practical economic policy advice. The first part of main part of this paper describes Ta-Chung Liu’s academic contribution to China’s economic development when he was a professor of school of economics at Tsinghua University, mainly through following five aspects:the dissemination and use of modern macroeconomic econometric research on the Chinese economy, China’s economic system, how to fight inflation, his views on Chinese economics academic independence. The second part focuses on Ta-Chung Liu’s economic policies and practices from1950s to1970s in Taiwan. In the1950s he returned to Taiwan and proposed policies such as a single exchange rate, interest rate liberalization, trade liberalization. This policies proposed by Ta-Chung Liu was accepted by Taiwan authorities and reforms soon were taken in these areas. This was known as Taiwan’s first economic liberalization reform. The success of this reform promoted Taiwan from an import substitution to an export expansion. At the same time, Ta-chung Liu was the pioneer of Taiwan’s total supply and demand model. He was appointed as director of Tax Reform Commission of Taiwan in1968to improve the tax structure, establishing the basis of direct taxes. Da-Chung Liu envisaged the establishment of a doctoral economics research class in the1940s. This tentative plan was finally put into practice in the1970s in Taiwan, promoting the independent development of Taiwan’s economics academic. This article is the first systematic and comprehensive introduction of Ta-chung Liu’s economic thinking, academic contribution and policy practice from Tsinghua University to Taiwan. And this article is also an analysis and understanding of Ta-Chung Liu’s economic thought combined with the economic situation of contemporary China and Taiwan and has a great significance in having a whole understanding of Ta-chung Liu’s economic thought and the academic development of Chinese economy.