Analysis Of The2008to2011, China’s Inflation Causes And Policy Recommendations

Inflation has always been a macro economics research one of the core problems.It formed and future trend is not only related to China’s economic growth can bemaintained stable, but also related to the welfare of the residents of our country leveland it is the important factors effecting civil affairs. Since2008by the U.S. subprimemortgage crisis, the outbreak of the global financial crisis, the Governments responseto the crisis have been injecting liquidity to the market, our government respond torapidly assess the situation and to avoid the spread of the crisis in the country, but withthe change of the situation home and abroad, China’s food price as the main power inthe overall price index rising, and2011for the average consumer price index rose5.4%, increasing inflationary pressures, This article is completes under thisbackground.In classical macroeconomic theory, inflation causes generally divided intodemand-pull, cost push and structural inflation. Through the existing school ofeconomics on the theory of inflation, intensive research resulting in China’s currentcause of inflation, use of quantitative and qualitative analysis of the factors that affectour country at this stage inflation: excess money supply, inflation expectations, thefactors of production prices and imported inflation. And pointed out that, between thefour are interacting. Through the analysis of the causes of inflation in China, andfinally make policy recommendations, noting that the integrated use of monetary andfiscal policies, to ensure a stable monetary policy implementation of the basis, the useof fiscal policy, taxation and financial policies give full play to the fiscal policymacroeconomic regulation and control.The innovation of this paper that is closely linked to today’s current events,analyze the causes of the present stage of inflation, with a strong logic. And access to alot of information and data, with a strong convincing. In the case of monetary policycontrol space reduction, focuses on the inhibitory effect of fiscal policy on inflation, and strengthen tax, optimizing financial investment, increase financial subsidies, theestablishment of material reserves to make policy recommendations, the very strongfor and feasibility. Concluded that the long term, it is necessary to give full play to thefinancial function, optimize the industrial structure, promote the transformation of themode of economic development, the implementation of fiscal and taxation policies toencourage technological progress and technological innovation, promote thecoordinated development of exports, consumption and investment Troika, to achievesustained economic growth and stability.