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ECONOMICS FOR GLOBAL BUSINESS - Essay Example

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This report is prepared with the aim of discussing and analysing the different macroeconomic policies devised and implemented by the Government of China and the Central bank of China over the last two years. The monetary policies, fiscal policies as well as the regulatory…
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ECONOMICS FOR GLOBAL BUSINESS
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ECONOMICS FOR GLOBAL BUSINESS

Download file to see previous pages... The average annual growth of the Chinese economy has been around 10% in the last few years. The growth and expansion of the economy of China can be credited to the array of economic reforms that have been taken up in the country in the last few years. These economic reforms have made the Chinese economy more production oriented and has supported the increase in the production capacity of the nation. Presently, the government of China is focusing on developing a wide array of macroeconomic policies in the country which would support the accelerated growth of the nation and strengthen the economic system of the nation as well. China aims at maintaining the stability and innovativeness in its macroeconomic policies. The macroeconomic policies of China including both the monetary and fiscal policies are prudent and proactive. The central aim of the government of China is to support the economic growth and development through the management of the macroeconomic demand. Also, the country wants to respond adequately to the fluctuations in the domestic as well as the global business conditions through the introduction of effective and innovative macroeconomic policies. These macroeconomic policies have enabled the nation to prevent a build up of financial risks and inflationary pressures on the economy and also sustain the local employment levels.
The macroeconomic policies of China are mainly formulated by the government of China and the Peoples’ Bank of China which is the central bank operating in the country. As in the case of other economies, the policymakers of China also employ a wide number of varied regulatory, monetary and fiscal policies. However, the operations of these macroeconomic policies are significantly different from the operations of the macroeconomic policies in the developed economies of the world. These differences can be mainly found in the ...Download file to see next pagesRead More
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