摘要
This paper predicts that the Chinese economy will unlikely encounter inflation in the short term.The major risks posed to China currently are deflation and downward pressures.Macro-regulations should have a clear orientation,combining stable growth with prevention of deflation,and integrating demand-side regulation and supply-side structural reform.The focal point of the demand-side management is to set a reasonable bar for the growth rate of the economy and the rise of price levels in order to stabilize and guide market expectations.Policy makers should adopt a moderate and directional regulatory monetary policy,setting appropriate policy objectives for the prevention of deflation,as well as make use of a variety of policy measures.China should implement a structural fiscal policy in a proactive manner,giving extra dynamic ability to the implementation of policies so that they can be more effective.Afterwards,through a deep reform of the supply-side,China can reinforce economic restructuring and boost economic growth.Policy makers should pay close attention to the reform of key areas such as state-owned enterprises,land supply,finances,taxation,and prices.
