Beijing: Zhongguo qingnian chubanshe, 2005. 260 p.* The Chinese economy is rightly considered to be one of the fastest growing in the world. Indeed, during the period of reform that has been going on in China for more than a quarter of a century, the average annual growth rate of national GDP exceeded the 9% mark. Much less well-known among non-specialists is the fact that Chinese economic growth is uneven and that it is characterized by specific cyclical patterns. Sharp acceleration of economic dynamics is usually accompanied by jumps in inflation, and to overcome the emerging "overheating" of the economy, the authorities resort to administrative and financial methods to limit aggregate demand. As a result, price growth is restrained, but along the way, economic growth slows down, it is difficult to create new jobs to absorb excess labor resources, stocks of unsold products accumulate, and the problem of non-payments in the financial system becomes more acute. These processes, in turn, contribute to the weakening of the financial squeeze on the part of the authorities, which gives rise to a new "warming up" of the economic situation. Such trends were evident in the Chinese economy as early as the 1980s, and in the second half of the 1990s, the already familiar pattern of the economic cycle underwent a significant modification. This time, the downward phase of the cycle was not limited only to a slowdown in economic growth against the background of lower inflation. During the rapid recovery of the first half of the 1990s, huge overcapacity and inventory surpluses accumulated, and the Chinese economy has been plunged into deflation since 1998. Now the authorities have had to specifically stimulate economic growth by boosting the economy. * Yu Yongding, He Fan, and others. Summer of the Chinese Economy: an analysis of the current macroeconomic situation and macroeconomic policy. Beijing: Chinese Youth Publishing House, 2005. 260 p. page 213 public spending, including ... Read more