ABSTRACT

The Chinese government has carried out five retrenchment macro regulations according to the different economic operation trends and systematic environment. The first macro regulation was directed against the overheated economy in 1978. The second macro regulation was aimed at the overheated economy in 1984. The State Council issued a notice in November 1984 requiring various regions and sectors to strictly control fiscal expenditures and the credit supply. The third macro regulation was directed at the overheated economy from 1987 to 1988. The fourth macro regulation was directed against the overheated economy from 1992 to the first half of 1993. The fifth macro regulation was directed at preventive and precautionary control, rather than at an all-around overheated economy and serious existing inflation. The fifth macro regulation was directed against the prevention of violent economic ups and the induced violent economic downs, rather than the violent ups with the economic growth rate of over 11 percent.