On The Two Current Difficulties of Macroeconomic Management in China

Macroeconomic management produces strategic influence on the performance of the national economy. Therefore, soft landing policy has efficiently controlled the excessive investment on real estate and securities beginning in 1990s, and also made China get rid of the possible financial crisis related to such excessive investment. But later on, in the course of practising market-oriented economy, China faces such difficulties as weak demand of domestic market; slow growth of economy; and decrease in net exports influenced by Asian financial crisis. The author tries to discuss the crucial issues in macroeconomic management practice in three aspects: the effect of fiscal policy on the economic development; the relationship between investment demand and consumption demand; and the relationship between government investment and private investment.