.90 Analysis Of The U.s. Economy, Low Unemployment And Low Inflation Co-exist,

In 1990s American economy presented new features high eco- nomic growth rate, low unemployment, low inflation and low financial defi- cit exlste(I side by side. People call this new phenomenon New Economy. This paper makes a preliminary approach to what causes low unemploy- ment and low inflation and what makes them coexist. The main causes of low unemployment are as follows: the development of high and new technology, the increasing of export, the changes of the economic structure, the reform of the financial system and the appropriate monetary policy etc.. The main causes of low inflation are the following: the reform of financial system, the appropriate monetary policy, the devel- opment of high and new technology, annexation and reconstruction of enter- prises, appreciation of U . S. dollars and the decreasing price of the import products ect. . However, the intension of the tendency of the economic globalization, the development of high and new technology, ntermediary monetary policy and the fall of petroleums price, as the main causes, re- sult in the coexistence of low unemployment and low inflation. There are six parts in this paper, respectively stating the features of the increasing American economy in 1990s , what causes low unemployment and low inflation and what makes them coexist. Then it also briefly makes shallow comnients on the ideas of those who advocate New Economy. Final- ly, it sets forth its enlightenments and countermeasures to China.