Premium Essay

Current Economic Conditions and Macroeconomic Policy in China

In: Business and Management

Submitted By jimmy123qw
Words 339
Pages 2

the macroeconomic conditions of our country is not so serious .

After 30 years’

reform, our country has already started to build up some policy in order to control

economical system .At present ,financial crisis is becoming a heated issue. Under

suchconditions , it is important to figure out what can be done by our country

onfiscal policy and monetary policy to achievement objective of the economy.

Internal economy

excessive reliance on foreign markets

Poor countries are better off pursuing outward-oriented policies. But our country

depends on foreign markets too much. We have been emphasized” pull domestic

consumption” for about ten years but cannot make a breakthrough all the time, and

domestic consumption rate is not rising but falling constantly.

Inflation cannot be stopped in a short time

Inflation’s occurrence and development is always lag behind an overheated economy

about several quarters. At present , China’s e

conomic growth rate slow down

slightly.But the inflation pressure will remain in the next period of time.International

oil, food prices’ increasing leads to the rising of the cost of production in China


government should reasonably use the three monetary policy to control this .

Lacking of core technology and independent innovation

industry policy should be strengthen roundly,it seems a historical problems in

economy,Recent years, high and new technology products’ exp

ort is increasing fast !

In 2014. 80% produc

ts’ core technology are controlled by foreign

business man. So

some industries are not competitive ,but monopolized by some big corporations


External economy

The foreign economic policy influences




Similar Documents

Free Essay

Economic Policy

...The World Bank notes PREM AUGUST 2009 N U M B E R 141 ECONOMIC POLICY The Global Financial Crisis: Comparisons with the Great Depression and Scenarios for Recovery Milan Brahmbhatt (PRMVP) and Luiz Pereira Da Silva (DECVP) A recent paper by Eichengreen and O’Rourke on “A Tale of Two Depressions” (publicized by Martin Wolf in the Financial Times) has highlighted some close correspondences between economic performance during the present world recession and that during the early months of the Great Depression that began in late 1929.1 World industrial production from April 2008 to April 2009 fell as rapidly as during the first year of the Great Depression, while stock market prices and world trade volumes have fallen more rapidly than in the comparable period. These comparisons lead Eichengreen and O’Rourke to draw the alarming conclusion that “[I]t’s a Depression alright.” They note, however, that fiscal and monetary policies are likely to be much more supportive of economic activity in the next 1–2 years than they were during the first few years of the Great Depression. The first part of this note outlines some other important structural differences between the world economy today and in the 1930s that are likely to affect how the present recession plays out relative to the Great Depression. The second part of the note discusses possible recovery paths out of the current crisis. 1. Comparing the Great Depression with the Present Global Financial Crisis Larger...

Words: 4313 - Pages: 18

Premium Essay

Current Macroeconomics

...Current Macroeconomic Conditions Evaluating current macroeconomic indicators are essential for managers to monitor on an ongoing economic environmental scan of their organizations. There are many indicators and depending on the industry some are better than others. The primary measure of the economy’s performance is its annual total output of goods and services known as its aggregate output (McConnell, 2009). Gross domestic product (GDP) defines aggregate output as the monetary values of all final goods and services that are produced within the borders of a given country during a specified time frame which is usually a year (McConnell, 2009). To measure this accurately, all of the goods and services produced during the year of measure must be counted only once. This takes into consideration those products that go through a series of production stages before they actually reach the market for sale. One must realize that some of these components are bought and sold many times before becoming a part of the final good(s). GDP includes only the market value of final goods and ignores intermediate goods which are those goods and services that are purchased for resale or for further processing. Final goods references the consumption goods, capital goods, and services that are purchased by their final users. GDP was never meant to be the measure of our well-being but a measure of our production. Literally, the total value of the goods and services produced within the......

Words: 360 - Pages: 2

Premium Essay

Interpreting Macroeconomic Conditions

...1 Interpreting Macroeconomic Conditions - Assignment 4 Managerial Economics and Globalization – ECO 550 Interpreting Macroeconomic Conditions 2 This assignment involves analyzing several indicators of the of the macroeconomic conditions in an economy, such as interest rates, income, and other indicators such as CPI, inventory levels, wage rates, consumer confidence, etc. Analyze these indicators and prepare a 3-4 page report explaining the expected short impact on firms in the following industries, retail business and automobile industries in terms of product sales and operating costs. I feel it would be better served to explain exactly what macroeconomics means. Macroeconomics evaluates or examines the overall performance of the economy as a whole and in this process we can determine what causes the economy to grow and how indicators such as interest rates, income, wage rates, employment and unemployment can affect the overall performance of our economy in its current state as well as forecast predictions for the future. This type of activity and performance is often measured through the GDP (Gross Domestic Product); the total value of all goods and services in the market. This information can be applied to any firm/business to evaluate how these changes impact their product sales and operating costs in the United States. If were to evaluate a local retail......

Words: 1000 - Pages: 4

Premium Essay

Current Uk Economic Conditions

...Section B - Current UK Economic Conditions Information and definition UK The United Kingdom of Great Britain and Northern Ireland is also known as UK, United Kingdom or Britain. United Kingdom is a member of European Union, G 8, G-20, World Trade Organization, Common Wealth of Nations, United Nations Security Council, NATO, Organization for Economic Cooperation and Development (OECD). United Kingdom is a well developed country. It has a rich economy brought up by economies of its individual countries England, Scotland, Wales and Northern Ireland. Landon which is the capital of UK and England is the most important financial center for international business and commerce. UK is one of the most important globalised countries of the world. GDP GDP, or Gross domestic product is a measure of a country's economic activity, namely of all the services and goods produced in a year. It is arguably the most important of all economic statistics as it attempts to capture the state of the economy in one number. Quite simply, if the GDP measure is up on the previous three months, the economy is growing. If it is negative it is contracting, and two consecutive three-month periods of contraction mean an economy is in recession. GDP is based on a huge survey of businesses and government departments compiled by the Office for National Statistics. Credit rating The BBC News explains that “Credit ratings are issued by credit rating agencies, private companies who sell their financial......

Words: 1186 - Pages: 5

Premium Essay

Cpi, the Repo Rate and Sa Current Economic Conditions

...out was for massive policy responses and this is what will be dealt with in this essay, what these policies were and how they responded. Questions that will be answered are; what are the differences between monetary and fiscal policy? Policy responses in terms of the ISLM model, which one best stimulates aggregate demand and lastly can these two policies be effective together? Difference between monetary and fiscal policy During the recession unemployment was rising while income, business investment, and consumer spending were falling and this was a result of a drop in demand due to production cuts because many firms were encountering financial difficult. After the financial crisis policies were implemented to combat the recession which were expansionary monetary and fiscal policy. Monetary policy is the central bank’s attempt to influence the economy by changing the level of reserves in the banking system. "This policy controls the supply and availability of money; it is when a government attempts to influence the overall level of economic activity in line with its political objectives. Usually this goal is ‘macroeconomic stability’ - low unemployment, low inflation, economic growth, and a balance of external payment”, writes Hall (2011:01). When the government purchases bonds by central bank this reduces banks' reserve requirements and drops interest rates in the short run. This is known as an expansionary monetary policy aimed at battling the economic contraction by......

Words: 1836 - Pages: 8

Premium Essay

The Current Macroeconomic Situation

...The Current Macroeconomics Situation Recession and Depression Jennifer Pearson The Current Macroeconomic Situation Today the current macroeconomic situation in the US is troublesome abroad. The unemployment rate is 7.5% of June 2013; so the average rate ahead is about 5.7%. Instead, the inflationary rate is approximately 2.3% that is 5% less than the past average rate of 2.28%. However, the data shows the dollar buys less and less each passing day. As stated in the Trading Times, ‘’ The Gross Domestic Product (GDP) in the United States expanded 2 percent in the third quarter of 2011 over the previous quarter. I think the government need to utilize an expansionary fiscal policy, by using the money to increase the liquidity in the system. As a matter of fact, always take precaution not to over-do it because there is so much money out there that will make the dollar invaluable. Today’s current downward trend for interest rates should help tighten the economy; instead securities are hard to come by and lowering the interest rate may have minimum effect on small businesses that need capital can’t obtain a loan from a borrower. The Current Macroeconomic Situation in the United States The Federal Open Market Committee (FOMC) discussed in October 2012, that it was verified the unemployment rate seems to be declining. It was also verified that American households spending has risen slowly, but the unemployment rate seems to......

Words: 322 - Pages: 2

Premium Essay

Current Macroeconomic Situation

... College of Business and Management Pomona, California Assigment 3 By Arturo Bauer Submitted in Partial Fulfillment of the Course Requirements for Principles of Economics ECON312 3269 Nitin Dvivedi April 14, 2010 Week 6 Assignment Introduction The current macroeconomic situation has been an issue of many talks in the United States and worldwide. Everyone is trying to change the situation, but no definite answer has been found. 1] What is the “current macroeconomic situation” (e.g worrying about inflation and/or recession) in the U.S.? The macroeconomic situation in the United States is not stable due to the financial instability, especially in the macroeconomic arena, because imports and exports are really down. The case for macroeconomic policy stimulus has been stronger in the United States than in Europe or Japan and both US monetary and fiscal policy have already acted forcefully. Going forward, the scope for policy support to decelerating activity depends on inflation developments. Soaring oil, food and other commodity prices have led to a sustained pickup in headline inflation rates and increases in producer price inflation suggest further impending cost pressures. In these circumstances, a ratcheting up of inflation expectations remains...

Words: 397 - Pages: 2

Premium Essay

Economic Condition

...Question 1 There are many different ways to measure the performance of the economy. Economic indicators are the tools we use to measure this performance or forecast future performance. Some indicators are broader than others, some focus on specific industries. It is important to look at variety factors to assess the overall health of the economy. I have analyzed ten different factors in order to as gauge the current state of the United States economy. The consumer price index measures the average change in the prices paid by urban consumers for all goods and services purchased for consumption by urban households. The CPI lets us compare what a certain group of goods and services cost the average consumer this month compared to last month or any other past month. It reports price changes in over 200 categories, weighted by their importance, arranged into eight major groups. The CPI also includes several everyday fees such as vehicle registration, utilities, and sales taxes. This provides us with a real outlook on how inflation is affecting the majority of consumer’s cost of living, by looking at how the prices of their most used items are increasing. We can use these monthly snapshots observe long-term inflation trends. Financial markets are very sensitive to unexpected changes in this index, as they indicate the consumer’s ability to spend. Moody’s will refer to core CPI frequently, core CPI refers to the consumer price index less food and energy. The core CPI gives a......

Words: 3156 - Pages: 13

Premium Essay

Current Macroeconomic Situation, Fiscal and Monetary Policies

...Current Macroeconomic Situation, Fiscal and Monetary Policies Current Macroeconomic Situation, Fiscal and Monetary Policies Introduction As the leading world economy, the United States and has been in a recession since 2008 and the leading outcome of this recession has been no other than unemployment. The newsflash among media and television about this recession has resulted in unemployment, and how to remedy this “current macroeconomic situation”. No one seems to have an immediate solution on how the economy will get better. The news and media do a lot of finger pointing and giving various unpleasant names to the situation such as calling it “the decade of depression”. Our inflation rate is about 2.3%, which is currently lower than the past rate that was 3.4%. As of July 2012, unemployment rate has been around 9.3%, compared to the prior average years back of about 5.6%. Research We all know that if there is unemployment, consumers do not spend as much money and businesses suffer, from that but honestly speaking, not many of us know what these unemployment figures mean or represent for sure. We can assume or estimating what it means without understanding since we were not aware of what it was before or one is not personally affected by the unemployment saga. So it gets to be a bit mind-boggling when some industries throw these percentages out there and expect us all to know what they mean and as a way to......

Words: 845 - Pages: 4

Premium Essay

The Current Macroeconomic Situation in the United States

...The Current Macroeconomic Situation in the United States Name: Institution: Abstract The policy makers in every economy play an imperative role in regulating the macroeconomic activities with the intention of maintaining the economic stability. In essence, economic stability is vital for improving the social welfare of citizens, as well as the economic growth. The current United States economic outlook is not good. The average American is not doing well though there has been an improvement in market performance. The 2009 financial crisis continues to affect the United States economy. High unemployment level is the major economic issues that the country is still experiencing. The unemployment rate is still high although there has been a small improvement in job creation. As a result of unemployment, the consumer confidence as well as business sentiment continues suffering. At present, inflation is not a critical threat to the United States. The Gross Domestic Product is flat. In fact, the growth of real GDP has been excessively slow. The monetary and fiscal policies can help the policy makers in solving the present unemployment problem facing the country. In particular, the policymakers ought to consider implementing both expansionary monetary and fiscal policies since the current level of unemployment is essentially cyclical. With regards to the expansionary fiscal policy, the policy makers should implement it through......

Words: 876 - Pages: 4

Premium Essay

The Economic Impact of the One-Child Policy in China

...The Economic Impact of the One-Child Policy in China John F. Rodis EMBA International Economics Professor Jim Stodder October 15, 2014 The Economic Impact of the Single-Child Policy in China Thesis Statement: The single-child policy implemented in China more than thirty years ago to slow the rate of population growth, not only had a marginal effect on the growth of the population, but also had the unintended consequence of a long-lasting negative impact on the Chinese economy. Abstract: The Chinese government imposed a single-child policy 34 years ago in response to a rapidly increasing population that was determined to be unsustainable. Last November, the government ended the policy. A careful review of the literature regarding the efficacy of the policy as well as examination of other factors that could have affected population growth was conducted. The result of this review confirmed that the policy—in and of itself--had only a marginal impact on the growth of the Chinese population. However, the policy resulted in a significant change in the demographics of the Chinese population, with the result of China having a significantly older population than many developed nations, but one that aged at a much faster rate. However, unlike these developed nations, neither the Chinese people nor their government is adequately prepared for this rapidly aged population. As a consequence, there will be significant long-lasting negative consequences on the Chinese economy,...

Words: 3480 - Pages: 14

Premium Essay

Interpreting Macroeconomic Conditions

...We live in a global economy. There are trading exchanges all over the world, i.e. China, Tokyo, Brazil, Russia, India, Australia, London, etc. The stock exchanges in China and Brazil are some of the largest in the world. Everybody in the world can access securities exchanges via the Internet. The dollar is weak right now. Europe has a debt crisis and the Euro is not so stable. Not long ago, one of Europe’s leading independent forecasters for the Treasury asserted that the Euro could collapse as a result of Europe’s debt crisis. The European Central Bank’s Governing Council Member asserted that it is not up to the bank to save countries where governments run the risk of being insolvent. Germany had good growth in 2010 but their economic model is centered on exports, i.e. cars and machines. Asia (China) drove Germany’s growth in 2010. Can Germany sustain their economic model since other European countries have stagnant economies re: exports and imports? The European debt crisis has pushed the Euro down which has made German exports more competitive. Right now, US exports are even better than German exports because the US dollar is weak, too. Since Germany appears to be in the best economic position in Europe more people are putting capital in Germany when investing in Europe. German exporters could take a huge hit if Europe’s debt crisis runs into other European countries. Unemployment rates were lower in April than a year earlier in 297 of the 372 metropolitan...

Words: 1546 - Pages: 7

Premium Essay

Eco 203 Macroeconomics - Expansionary Economic Policy

...Expansionary economic policy During the Great Depression, the United States suffered severe and lasting unemployment, along with falling prices and a sharp decline in real output. Because the unemployment level lasted so long, the Keynesians disagreed with the Classical theorist. The Classical economists argued that recessions would be temporary and self-correcting; therefore, the government should have a limited role in the money supply. Whereas, the Keynesians argued that during a time of long-term financial crises the government should intervene by injecting money into the market. Still many economists continue to debate about which economic policy to implement during a crisis in the financial market. Therefore, in an effort to move the economy out of a recession, the federal government engages in expansionary economic policies to alleviate the strain. A recession is a general slowdown in economic activity, during which the federal government will implement fiscal policies and the Federal Reserve Bank will implement monetary policies to stabilize the economy. Indeed, policy measures implemented to increase Gross Domestic Product (hereinafter referred to as GDP), and economic growth are expansionary. When the federal government implements fiscal policy it is to stimulate growth and employment by changing tax rates, levels of transfer payments, or government purchases of goods and services in order to change the equilibrium level of national income (Amacher & Pate,......

Words: 2377 - Pages: 10

Premium Essay

Economic Policy

...can u name? Lack of capital, physical capital(buildings, machines etc.), human capital and entrepreneurship 2. What causes of richness can u name? Over-population, poor nations-lack of natural resources, prosperity requires liberty 3. Name 2 kinds of economic planning  Mandatory – setting quotas and mandatories for goods  Indicative – encouraging production of some branch by subsides, grants and taxes 4. Name at least 3 economic systems Socialism (planned and collective), capitalism (individualistic and competetive), mixed (planned and individualistic – war capitalism, collective and planed – market socialism eg. China) 5. Name basic institutions of effective capitalism Provate property rights, market system, no corruption, monetary stability, openess of economy 6. Name basic recommendations or elements of merchantilism Encouraging agriculture, ecenomic wealth can be measured by precious metal (silver/gold); export over import, merchant fleet as vital importance, government involved in economy 7. Key elements of national competetiveness Basic institutions, infrastructure, stability 8. Name main elements of firm competetiveness Demand and supply, financal performance, investment ratio 9. When Keynesian policies to fight recession can not be applied? When there is a budget deficyt, high public debt, recession, no possibility to borrow money 10. How many arguments in favour of protection of infant industries can u name? Further development of this......

Words: 1678 - Pages: 7

Premium Essay

Interpreting Macroeconomic Conditions.

...Interpreting Macroeconomic Conditions. Walmart Stock Performance During the 1970’s, Walmart offered common stock to the public. The stock was traded on New York Stock Exchange. The first cash dividend was declared. Shareholders were provided an annual dividend and paid quarterly every year ( phoenix.zhtml? c). In 1970, Walmart offered 300,000 shares of its common stock to the public at a price of $16.50 per share. Since that time, Walmart have had eleven two for one stock splits. On a purchase of 100 shares at $16.50 per share on their first offering, the number of shares has increased. In March 1974, Walmart declared its first cash dividend of $0.05 per share. Walmart has increased its dividend every year since its first dividend ( phoenix.zhtml?c). Walmart Current and Future Sales Revenue According to all the data that has been evaluated, Walmart is the largest retailer in the world. By the end of January 2010, Wal-Mart had more than $400 billion in revenue, $24 billion in operating income, about 8,500 stores, and nearly 1 billion square feet of space. According to statistics from the U.S. Census Bureau, about 10% and 20% total of retail and grocery sales in the US. The company controls the US retail surroundings and is growing globally at a fast pace. The company recorded revenues of $408.214 million during the financial......

Words: 1253 - Pages: 6