ABSTRACT
Resurgent growth and a more open emphasis on reform are causing other countries that are moving toward a market-regulated economy to view China's economic reform program as a successful experiment worthy of study. The absence of an independent central banking system and well-established financial markets, the principal instruments for carrying out macroeconomic policy in Western industrial countries, caused the Chinese government to rely extensively on heavy-handed administrative methods to implement the anti-inflation program initiated in the fall of 1988. An 18.2 percent rise in industrial output during the first quarter of 1992 from a year earlier has rekindled worries about inflation. Reports persist of tensions between Deng Xiaoping and his supporters, who want to sustain economic growth at double-digit levels within an accelerated reform environment, and the more conservative State Council, which wants to restrict growth rates to the 6-7 percent range and establish a tighter grip over the economy.
