Inflation and deflation

Author: Li Jie
Publisher:
Publish Date: 2003-12-01
Features: In 2003, as the Consumer Price Index (CPI) began to rise, the research on deflation that had started in 1998 gradually faded away, while the study on whether inflation could return gained prominence. This echoes the research on inflation issues in the late 1980s and early 1990s in academic circles. Both inflation and deflation have become major challenges encountered in China's economic system reform and development, both in the past and in the future. As two aspects of macroeconomic imbalance, inflation and deflation are intricately linked. Even in the process of addressing one imbalance, one might unintentionally fall into another trap of imbalance. Therefore, studying both together to explore their commonalities and differences, revealing the essence of inflation and deflation, comprehensively understanding and mastering the causes of macroeconomic imbalance, and researching and proposing countermeasures are undoubtedly of great theoretical and practical significance.