Deflation in China: Causes and Strategies

HE Shuquan ()

No 2004003, SHU Economics Working Papers from Department of Economics, Shanghai University

Abstract: More and more economists argue that the Chinese economy since 1997 has been dominated by deflation. The causes can be analysed from macro-micro and supply-demand perspective. The main cause is the growth of manufacturing capacity exceeds that of final demand. Major strategies are expanding home demand, speeding reform and taking measure to deal with inadequate demand in the rural area.

Keywords: Chinese Economy; Deflation (search for similar items in EconPapers)
JEL-codes: F1 F2 (search for similar items in EconPapers)
Date: 2004-07
Note: Written in Chinese and available on request

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