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Price control should be phased out 2008-08-25 00:00 Click: second

The article of Professor Han Baojiang, deputy director of the Economics Department of the Central Party school, published in the 33rd issue of Outlook Weekly in 2008, holds that China's economy is still maintaining a "sound and fast" development momentum, and the key problem is how to find a "balance" between avoiding economic "landslide" and preventing inflation. It is necessary to increase the ability to bear the problems and find solutions
Recently, the National Bureau of statistics released the main indicators of macroeconomic operation in the first half of this year and the main data of macroeconomic operation in July. Although China's rapid economic growth and the potential of the world economy are still not well supported by China's rapid economic growth and market potential, the paper argues that China's rapid economic growth is still not supported by the objective data.
The article points out that China's economic performance is good. First of all, under the condition of the world economic recession, China's economy can maintain a double-digit high-speed growth of 10.4% in the first half of the year, while the United Nations predicts that the global economic growth rate in 2008 will be only 1.8%; secondly, the income of residents, enterprises and the government has increased correspondingly. The third is that the trend of excessive price rise and trade surplus has been curbed to some extent, and residents' consumption enthusiasm is still rising. Especially in the case of various natural disasters in the first half of this year, residents' consumption still increased by 21.4%, far higher than the level of economic growth and income growth, which shows that people's confidence in China's economy and income growth is not declining.
Of course, to say that China's economy is performing well does not mean that there are no problems in China's economy. It's normal to have some problems and can't complain all the time. The key is to increase the ability to bear the problem, and do everything possible to find a solution to the problem.
The article holds that the key problem that we need to solve urgently is how to find a "balanced" solution between avoiding the "landslide" of China's economy and preventing inflation, so as to realize the "win-win" of maintaining growth and preventing inflation. The article said that to develop production and increase the supply of short-term products, the key is to straighten out the prices of these short-term products and scarce resources or products, so that prices become the main means to balance supply and demand. Therefore, it is inevitable to release the pressure of price rise of some products which have been suppressed for a long time in the past, resulting in the price being lower than its value, and then induce a new round of price rise. We should gradually give up the way to maintain low prices only by suppressing prices, and solve the problem by subsidizing the poor and low-income groups and improving their ability to bear the reasonable price rise of some products.


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