ABSTRACT
From the perspective of industrial structure, excessive supply or insufficient demand is mainly a phenomenon manifested in industrial goods. When public goods are in shortage for a long period of time, the chief goal of government management is not to stimulate demand, but to increase supply. Naturally, at a time of slow economic development, insufficient effective demand appears in the industries or products that are subject to short supply. In order to stimulate economic recovery when export growth is in decline and the value of the RMB remains unchanged, the government should concentrate on strengthening the efforts of the macroeconomic adjustment program in “stimulating domestic demand.” From a dynamic point of view, economic adjustment should be sometimes tight and sometimes loose, sometimes tense and sometimes relaxed, with appropriate tightness and looseness, and flexible expansion and contraction.
