On the Proper Positioning of the Role of Macrocontrol and the Market Machanism

With China’s socialist market economy system under further improvement and refinement, it is an internal demand for the overall development of the society and economy of the country to give free rein to the basic role of the market in social and economic activities and to strive for an organic combination of the role the government plays and the market mechanism through the realization of the government’s effective adjustment and control over economy. This paper expounds why in modern economy both the role of the market and the role of the government can not be absent though either of them has some defects. Then, it leads to the conclusion that the government’s interference and adjustment should be based on the practical need of the market and what the government interfers in should be confined to the solution to problems which the market itself is unable to settle, governing the market basically by no-intervention.