Macroeconomic Analysis of China's Economy

Class:2                        

Macroeconomic analysis of China's economy

Macroeconomic policies is relevant with the economic development of our country, it also means that the economic development of our country depends on the macroeconomics. Our country’s development is in a big environment, the highest level is the international economic environment, then the domestic economic situation and industry form. First of all we should be familiar with the various levels of economic environment, and then concrete macroeconomic policies, provide theoretical basis for the economic development of our country. Specifically, we ought to understanding the tax revenue, gross domestic product, the price index, interest rate, exchange rate, fiscal policy, monetary policy and industry, etc. At the same time, we also need to understand these links behind the policy, not just understand the policy itself. On the basis of thses, understanding the relationship between the factors above will have a significant impact on our country's economy. As an open economy, macroeconomics involves the residents, the government, the four departments of foreign trade enterprises. Macroeconomic analysis is combined with the operation of the four major departments to reveal a country's economic output, price level, employment level and macroeconomic variables such as interest rates change. I will use my imperfect macroeconomics shallow analysis to our country economy..

[pic 1]

First, taking a look at China's GDP and related fiscal policy .This is China's GDP from 1978 to 2014 in graphs, images can clearly see that China's GDP is growing. In our country's social aggregate demand and aggregate supply coordinated growth, increased revenue, I dare not say the personal income is increase, because my parent’s salary doesn’t increase, my living expenses doesn’t risen, but I also bring contribution to our country's GDP growth, income increase, of course, with the company’s rising profits between 1978 and 2014, the enterprise dividends and bonuses to stimulate the consumption. At present, another important issue influence the economic development of our country is inflation, how to create more jobs and make more people to find the right jobs is a more pressing problem. According to the relevant data show that our country has a population of 14 million unemployment at present and an annual increase of 10 million labor population, there are 150 million surplus labor to shift from rural to urban, the need to provide a large number of employment opportunities, but only about 8 million creating jobs a year in our country, obviously can't satisfy the huge demand for jobs in the whole society. Phillips argues that unemployment and wage growth have a inversely proportional relationship with unemployment and inflation, that is, the unemployment rate increases, the rate of inflation will fall and the unemployment rate, the rate of inflation will rise, thus according to Phillips's theory, it is difficult to achieve the double low inflation and unemployment, the unemployment problem is quite serious in our country, the official unemployment rate can not be believed, but experts estimate that China's unemployment rate reached 25%, even the number with the official data vary widely, but the figure is consistent with our personal feeling, there are many reasons to the unemployment problem in our country, the unbalance of total unemployment. In terms of labor supply, as an economic superpower, Our country's economy is population and labor surplus economy.