Results (
Thai) 1:
[Copy]Copied!
As the root cause of inflation remains unknown,the Chinese government could follow the traditionalstrategy to solve the inflation issue,which uses the combination of both monetary policy and fiscalpolicy.Under the current economic,a fiscalausterity might not be effective to control the inflation issue. Afiscal contraction will directly decrease the Chinese aggregate demand and degrade the overallequilibrium price and quantity(Samuelson, 2010) This situation is unfavour rable to the Chineseeconomy and GDP growth. This is because a fiscal contraction could damage both malicious inflationand benign inflation, in which the benign inflation is an input of economic growth
Being translated, please wait..
