Analysis of the financial crisis on challenges and opportunities to Chinas economic development.docVIP

Analysis of the financial crisis on challenges and opportunities to Chinas economic development 　　Abstract. The current round of international financial crisis or the world economy is facing a sharp decline risk. Or the real economy has been or will face more severe impact. Under the background of the global financial crisis and the economic crisis， China has more opportunities than challenges. Crisis is a risk and also an opportunity. In the level of reform， there are still a large number of things to do. The proactive fiscal policy and moderately loose monetary policy should be flexible， prudent and coordinate. Then China can be invincible and make greater contributions to achieve our development goals for the long-term development and reform. 　　Key words： financial crisis； Chinas economic development； challenges； opportunities 　　1.Analysis of the bailout cost of financial crisis 　　In view of the world financial crisis， to get rid of the economic downturn and contrarian expansion of extraordinary provisions of the amount of loose monetary policy made by the monetary authorities， seem to be more in line with the need of getting rid of the crisis. However， from the effect of previous bailout policy implementation， this unconventional policy of “make bubble with bubble” cannot save the economy any more， but oppositely will cause bigger bailout cost， and ultimately hinder the economic recovery and result in the risk of high inflation. So at present all the countries must get out of this unconventional liquidity expansion policy and return to normal state as soon as possible. 　　1.1 Quasi-quantitative easing monetary policies hindered the process of economic recovery in the United States during the Great Depression 　　In the view of the history of the global crisis， the liquidity policy was not an effective tool rescuing for crisis， but turned out to be the culprit that kidnap the process of global economic recovery， the Great Depression in the 1930s was confir