Government alone can not stimulate the economy

 Government alone can not stimulate economic
Zhou Qi Ren
certainty, we often can not see. Therefore, the need to draw from the strength of past experience. This wave of unprecedented changes in economic trends, but the downturn in the past have met the challenge. For example, China has made since 1997 off with bank credit, can promote infrastructure construction. However, no matter how much infrastructure repair has become the last top car should be run, only sustained economic growth.
so, or to both hands: one hand is the proactive fiscal policy , the bottleneck for future growth in initial investment; the other hand is the institutional policy to reform and stimulate economic vitality, to repair the road up and running soon have cars. China is still in transition economies, in addition to developed countries like the kind of monetary policy, fiscal policy , to give more consideration to the institutional policy.
From this perspective, there are so few New Year's economy is worth considering.
first or to play more fully the role of the relative price of resource allocation. experience shows that price controls even in times of high inflation is also wrong because it only take control of the , price controls always distort economic behavior. Therefore, the Government has announced the termination of the temporary price intervention measures are very important. In order to revitalize the industry, but also eliminate a few years ago crisp control measures.
more to see, the problem is not just the price of general goods and services, such as exchange rates, interest rates, resource prices have a more important function, to allow the price mechanism in these areas play a greater role. flexible the relative prices reflect supply and demand, can help industry and businesses find opportunities to adjust investment and business direction. Otherwise, the domestic and external demand are very abstract concept, left the relative price guide, what is domestic and what is external demand is also not clear about.
second point is the tax. The current policy measures which have been included to reduce some of the content value-added tax. This is. But the intensity of tax cuts is not enough. If further economic slowdown after the spring intensified, may wish to consider more substantial tax cuts.
an account to be settled: What other companies engaged in social policy after the collapse of the rescue, I would first take hold out of tax concessions to companies to hold out as much as possible? I think the latter approach better, it is necessary to clear cut off a piece of high value-added tax, as more companies such as barely to be more trouble after the Spring Festival. tax cuts not only value-added tax, corporate income tax personal consumption tax, must be considered substantially reduced. In addition, import duties can be avoided, otherwise, there is increasing absolute surplus, not a good thing.
Third, although the total lack of confidence in speaking now, the investment inadequate, but is also clear that there are many highly profitable domestic industries and opening up is not enough. is not no power or no interest in people, but open enough. should be on a continue to do so. At the time, because China to join the WTO, in telecommunications, civil aviation, power these big industries some degree of openness and reform, a great contribution to economic growth. It now appears that these areas as well as health, education, cultural and other fields there is still much room for market opening, there are many potential investment opportunities, the problem is not access, no one way.
factors have a large administrative monopoly state-owned enterprises reform, not the profits to the primary, not reduce executive pay, but open market access. because of the profits in these sectors and the high salaries and other benefits, there is not enough of the fruit market opening.
few years ago, the State Council of ;, provides unlimited entry, but actually the past did not provide the macro-environment seriously implement the conditions of that file should use this opportunity to slump, the administrative monopoly sectors of the market opening article bigger, re-energize entrepreneurship. < br> Fourth, since 2004, due to exchange rate mechanism to guide the export, excessive focus on control policies focus on the inhibition of the domestic industry's production capacity and investment. begins three overheated industries, and later a nine overheated industries, and then later regulation of real estate, are inhibited sexual orientation, and the expansion of the administrative examination and approval and administrative control.
must now speed up the reverse operation, that can unlock unlock, it must solve the system of ropes, to encourage production, to encourage entrepreneurship, encourage investment. For example, now have to consider, are we going to follow the traditional land system to the . Therefore, there is a how to growth in revenues a lot of money, business book bright, investment, when the NPC to make quick money, call the reform is not likely to have action. may present difficulties in promoting reform, the New Year in crisis, China should reform to achieve substantive progress.