Small Enterprises Vital for Growth and Employment
发布: 2008-9-15 18:22 | 作者: CE | 来源: China Economist
CAI Fang ( 蔡昉)
Professor, Institute of Population and Labor Economics, Chinese Academy of Social Sciences
Editorial note:According to the Phillips curve, a trade-off exists between economic growth and control over inflation and the two can hardly be achieved at the same time in implementation of macroeconomic policy. For China's reality, neither high unemployment nor high inflation is acceptable. China must balance the two to steer its economic growth on a stable and relatively rapid path to ensure the creation of some 10 million jobs and effectively rein in inflation. This essay analyzes these issues to answer the question of how the country can strike a healthy economic balance.
During a press conference for the 2008 NPC and CPPCC sessions, a reporter from the Financial Times asked Premier Wen Jiabao whether China would slow down the economy and run the risk of higher unemployment to deal with the pressure of inflation?
The response from the premier was: The country must strike a balance between promoting economic growth and holding down inflation and make prompt and flexible responses. It needs to maintain the right pace, focus and intensity of macroeconomic regulation measures. And it should ensure the economy continues to grow in a fast yet steady manner and create about 10 million jobs and effectively hold down inflation at the same time.
