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.
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Paper provided by Department of Economics, Shanghai University in its series SHU Economics Working Papers with number
2004003.
Order Information: Postal: HE Shu-Quan, Department of Economics, International Business and Mangement School, Shanghai University, 99#, ShangDa Road, Baoshan District, Shanghai, 200444 P.R. of China Email:
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Find related papers by JEL classification: F1 - International Economics - - Trade F2 - International Economics - - International Factor Movements and International Business