A Push for Economic Stability

G20 finance ministers reach consensus on stabilizing the banking system Finance ministers and central bankers from the Group of 20 (G20) leading advanced and emerging economies issued a communiqué on October 15 after a meeting in Paris, their last meeting before the

STRENGTHEN GUANGDONG-HONG-KONG ECONOMIC AND TRADE COOPERATION AND PROMOTE THE PROSPERITY AND STABILITY OF THE TWO PLACES

"The green mountains cannot prevent a river from flowing, inevitably,its running eastward continues". The day when HongKong returns to theembrace of the motherland is imminent and it has become an importantissue attracting the common attentions of various provinces and citiesthroughout the country to further study the issue of, and promote, economic and trade cooperation with HongKong. Guangdong Provice hasclose geographical, human and mutually dependent relations withHongKong and therefore feels more concerned.

Stabilizing Economic Growth

Despite a drop in global competitiveness ranking, China is still a key driving force in the global economy THE latest edition of the World Economic Forum＇s Global competitiveness Report sees a decline in the rankings for china, from 26th to 29th in the Global competitiveness

Small and Medium-Sized Enterprises （SMEs） in Personal Services

Entrepreneurship has become an attribute of the current growth without business activities. Entrepreneurship is a global world. It is not possible to think about economic driving force of technological development and scientific research. It materializes knowledge and involvement of people and society. Expansion of business activities is a source of individual country＇s economic performance. It contributes to the development of people＇s living standards. In every market economy, it represents an irreplaceable role for small and medium-sized enterprises （SMEs）. A strong representation of＂micro-enterprises＂ can be found in the field of personal services. Companies within the course of their existence go through particular stages of their development--from their foundation through the stage of steady development. After this stage, there comes their decline that can develop even into their termination. We indicate this process as a company life cycle. The aim of the submitted project is to map the life cycle of particularly chosen companies providing accommodation and catering services and to find a mutual relation among observed quantities and their stable economic positions in the market. The analysis is based on the data of macro-economic character, the data about development of receipts in the sector, development of inflation, tempo of economic growth, and development of consumer prices. Out of a company, non-financial factors will also be considered. The core of the analysis is the stage of sustainable stability of the assessed companies. The point of the findings is revelation of the causes of risks of possible transition into the stage of termination due to the decline of services volume, decline of profitability, and long-lasting payment insolvency. The contribution of the project is to draw our attention to possible risks of critical situation development and to propose how to avoid them so that the company will not occur in financial straits. Achieved information could assist the company management to make relevant decisions.

Next year China's economic progress will maintain stability

Central Economic Work Conference was held in Beijing from December 12 to December 14.The meeting proposed the general requirements for economic work of 2012.In 2012,the government will continue to carry out proactive fiscal policy and

Macroeconomic impacts of oil price volatility： mitigation and resilience

Dependency sectors, most notably on oil-derived fuels in various in mobility, has left the global economy vulnerable to several macroeconomic economic side effects. Numerous studies have addressed the effect of price volatility on specific economic parameters. However, the current literature lacks a comprehensive review of the interactions between global macroeconomic performance and oil price volatility （OPV）. Price volatility is intrinsic in commodity markets, but has been advancing at a faster rate in the crude oil market in comparison to other commodities over the past decade, reflecting the status ofoil as the most globalised commodity. In this paper, the analytical literature review and analysis of the behavioral responses of macroeconomic agents to OPV shows that such volatility has several damaging and destabilizing macro- economic impacts that will present a fundamental barrier to future sustainable economic growth if left unchecked. To ensure macroeconomic isolation from OPV, a combination of supply and demand-side policies have been recom- mended that can help to mitigate and build resilience to the economic uncertainty advanced by OPV.

Optimal Monetary Policy in China

Using the structural vector autoregression model, we estimate the current responses of monetary policy to contemporaneous shocks from macroeconomic variables. Our findings indicate that the People＇s Bank of China responded to inflation and output changes, but did not react to asset price fluctuations during the period from January 1997 to March 2010. The optimal monetary responses to exogenous shocks are also examined It is revealed that using asset prices to formulate monetary policy would not help to improve monetary authorities ＇performance in lowering the volatilities of output growth and inflation while keeping output growth and inflation in their safety zones. The effectiveness of monetary policy and fiscal policy in reacting to external shocks is also discussed.