How can China fight the current financial crisis and maintain long-term stable development?(金融危机 [2]
论文作者:佚名论文属性:短文 essay登出时间:2009-06-06编辑:龙清兵点击率:7777
论文字数:3211论文编号:org200906061606575786语种:中文 Chinese地区:中国价格:$ 33
关键词:Chinathe current financial crisismaintain long-term stable development
lism, and quoted Josef Ackermann, chief executive of Deustsche Bank, as saying "I no longer believe in the market's self-healing power."(Financial Times). Macro economist James K Galbraith, used the 25th Annual Milton Friedman Distinguished Lecture to launch a sweeping attack against the consensus for monetarist economics and argued that Keynesian economics were far more relevant for tackling the emerging crises (Galbraith,2009) . Starting in 2008, high level policy makers in the world's modern economies have shown a renewed interest in implementing economic solutions in accordance with the recommendations of Keynesian economics— such as fiscal stimulus and government intervention (Kale, 2008). Keynesian Keynesian thinking influences U.S. President Barack ObamaBarack Obama. In a speech on 8 January 2009, President Obama unveiled a plan for extensive domestic spending to combat recession, further reflecting Keynesian thinking (BBC wedside). For policymakers and their supporters around the world, Keynesian solutions are currently seen as representing the best option for saving their nations from the finacial crisis.
The following will discuss why and how China should adopt Keynesianism to fight the current financial crisis and maintain sustainable development from three aspects: stimulating domestic market, optimizing the import and export structure, continuing to implement macro-economic regulations.
Firstly, stimulating the domestic market is an urgent task for the government. Keynes argued that government policies could be used to increase aggregate demand, thus increasing economic activity and reducing unemployment deflation(Alan, 2002). According to Keynesianism, China should reinforce the domestic market as a way to fend off the global reverberations from the economic downturn.First, China’s overdependence on international trade is very vulnerable ,which is sometimes effected by the global uncertainty . According to National Bureau of Statistics of China, in the last few years, the total exports count for around 40% of the China’s GDP. However, the current crisis has greatly shrunk external demand, which has resulted in the closure of thousands of factories and a rise in unemployment, especially in developed coastal areas. Masses of unemployed workers will cause great concern over social and political instability in the next several years. Second, the export-oriented growth model cultivates strong inertia, locking China in at the lower end of the value-added chain. If China is going to keep its position as the “world’s factory” — a place of low-cost assembly lines — the country cannot substantially improve its real productivity in terms of research and development and manufacturing technology. For example, many state-owned firms became assembly lines for foreign-brand cars, and the major profits went to foreign investors. Third, overdependence on international demand has weakened Chinese foreign policy. This external dependency limits China’s policy options when it comes to responding to such issues as human rights, Taiwan, trade friction and even quarrels with Japan over
history textbooks. Chinese leaders often face the accusation of not doing enough and being too soft.
In order to extend the domestic demand and stimulate the domestic market, the Chinese government should take the following effective measures. Firstly, the government should continue to put additional investments in the infrastructure projects.
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