摘要
The problem of high investment and low consumption began when China was still under a planned economy. Back then, this disequilibrium, considered a vestige of the economic system, supposedly would eventually be resolved after China transitioned to a market-based economy. It did not. Household savings surged with the implementation of reform and opening- up policy in 1978. High savings supported the high investment that fueled China＇s economic development, yet also generated excessive capacity and hampered the improvement of people＇s living standard.
