The Prevention And Control Of China’s Inflation In The Post-crisis Era

In December1978, the Third Plenary Session of the Eleventh Central Committee convened, marking the beginning of China’s reform and opening up. Reform and opening up China’s economic system reform, is transfer from the planned economic system to a market economy market economic system has injected fresh blood into our economy. The past30years, China’s economic construction has made remarkable achievements, and overall national strength and people’s living standards all reached new heights. However, at the same time enjoy the economic fruits of construction, the problem is also emerging inflation problem is one of them.Inflation performance in the general price level over a period of time continues to significantly rise. Meter data show that since1978, China has experienced five times more serious inflation, every time inflation had a serious impact on economic development and people’s lives. So show that in an era of rapid economic development and economic globalization is accelerating parallel, inflation is the unavoidable question in the process of economic construction, especially after the financial crisis sweeping the globe in2008, could cause inflation factors of instability, more changeable. Review the past several inflation, its government has made a variety of control measures, the effect of good and bad on the economy, the society also caused different effects, so the past several causes of inflation in China, summed up control experience, of great significance to the prevention and control of inflation in China in the post-crisis era.This article is divided into four parts:The first part is the introduction. Mainly to explain the research background and significance of the paper, and reviewed the current academic research results of China’s inflation. I found in the existing research on the reform and development since the previous inflation, mostly a simple list of the background, because the lack of a systematic comparative analysis and discussion. The second part is the theoretical basis. Reviewed the basic theory of inflation, including the classical theory of neoclassical, Friedman, Keynes, Cambridge School of inflation theory, and in accordance with the classical theory, I explain the elaboration inflation definition, measurement, classification and principle. Through the review of the classical theory for the analysis of the causes and treatment effects of China’s reform and opening up since the previous inflation.The third part is the body.The article first introduces the background of inflation since China’s reform and development of five, showing, respectively, of its causes made; And then starting from the perspective of the background, the development of the concept of the market level of economic development, dependence on differences in global economic development, people’s income levels, inflation causes of differences in several times to make, resulting in the several times process of inflation, the trend of inflation causes:by the increasing influence of high degree of market opening, the role of increasingly complex factors, the international market deeper and deeper the degree of interference. And these factors are most likely to lead to inflation in the post-crisis era.Followed is to introduce governments have use what control policies and how effective is after the five inflation. Then I made comparisons in these Control policies of the five times inflation. The transformation of the concept of economic development and inflation treatment, the concept of change to enable the Government to use in the treatment of inflation in the past several policies vary, of course, also received a different effect.The fourth part is after the crisis era of inflation in China to prevent and control, and policy recommendations.In this section, the article first noted that after the2008financial crisis, the global economy, although not relaxed, but of which there are many unstable factors that could cause the existing state of calm was broken. Inflation is one of the unrest which, in the event of inflation, is likely to cause a very bad influence. According to the comparative analysis of the causes of the inflation of the previous occasions, the moment may cause inflation in China mainly due to:slow down by the financial crisis, the economic development of countries, deepen trade barriers, foreign input. energy, raw materials prices are too high may cause cost-push inflation; Domestic factors are subject to the foreign hot money and domestic hot money, money supply increase, followed by the government "40,000million" put in far more than its expected, resulting in a more fixed investment, domestic demand had large, this may lead to demand pull inflation.Therefore, the author of the control policies of the previous inflation and effect analysis, for several factors that may cause inflation policy recommendations:First, the use of a flexible monetary policy and prudent fiscal policy, the comprehensive management of economic issues; Second, to change the mode of economic growth, optimizing industrial structure; Third, the price regulation, improve the market order, and guide the right investments; correct understanding of the international market, the transformation of international trade.