Economic growth and stability in China

Abstract

This paper examines specific maeroeconomic issues relative to China's economic growth with stability. China's relatively high rate of growth in the 1980s came to be challenged by a high rate of inflation in 1988-1989. Two sets of questions are examined here: (i) first, a "trade-off" between growth and stability during the 1980s and deterioration of the terms of the trade-off; and (ii) second, primary causes of fluctuations in China's macroeconomic variables. In the process, we study the central role of China's public sector in money supply and a policy of closer integration of the Chinese economy into the international economy. (JEL 042, 053). © 1993.