My Understanding of the Macro-control in the Socialist Market Economy System of China

Because there exists market malfunction, macro-control is necessary for the advancement of construction of the socialist market economy. The author holds that the macro-control in the socialist market economy is essentially dif- ferent from that in the traditional planned economy, and that the macro-control by the government in the socialist market economy and the regulation by market forces can not substitute for each other,and therefore the importance of govern- ment regulation and guidance on economic activities can never be underestimated while we are giving full play to the market regulation. Such a macro-control by government and regulation by market forces should be allowed to coexist dy- namically,and in this way the optimum allocation of market resources can be realized.