Experts from the Academy of Social Sciences: the current economic inflation and deflation double pressure

Qi Jianguo, Ph. D., deputy director of the Institute of Quantitative Economics and technology, Chinese Academy of Social Sciences, Beijing, July 16 (Xinhua) Experts Qi Jianguo said that from the current point of view, China's economy has both inflationary pressure and deflationary pressure.　　Qi Jianguo, Ph. D., deputy director of the Institute of Economic and Technological Economics of the Chinese Academy of Social Sciences, 16th, a visit to the network interview room, the latest economic data for analysis and interpretation, and around the recent stock market rally, the price of high economic hot topic answer questions. The moderator asked, at today's press conference, the spokesman also received numerous media interviews, there are many media more concerned about China's future economic trend is likely to go to inflation or deflation.　　The speaker also interprets such a trend from different perspectives, and does not know how you look at such a problem, Professor Qi. Qi Jianguo said that because the price problem is actually a very substantive issue for an economy and one of the main objectives of macroeconomic regulation. So as every consumer, do not want to have inflation, but prices it is a double-edged sword, if the price is getting lower, as consumers buy things, when consumption feel better mood. But as a producer, if he produced a product of constant price reduction, it means that the macro-economic side is deteriorating.　　So economic growth can be within a normal range, then prices it should have a sustained such a small rise, that is, inflation and economic growth rate of a certain proportion of the relationship. Qi Jianguo said that from the experience of various countries in the world, assuming economic growth of 10%, then inflation in 5% to 6% is very normal, our economy in the past from the late 90, until the beginning of 2007, we are high growth and low inflation, this is a more special period, especially from agricultural products, food prices, is a market that regulates the normal response of supply and demand relations.　　So from the current point of view, we have both inflationary pressure and deflationary pressure, there is a very large uncertainty, all inflationary pressures, we expect the world's governments in order to stimulate economic growth, in order to manage the financial crisis, a large number of currency, in order to pull demand. Qi Jianguo That, the currency is too large, it is bound to the rise in prices to form a pressure, the monetary economics school said, prices are actually currency phenomenon, the currency has increased the inevitable rise in prices this is a factor. At the same time, because our economy is depressed all over the world, relatively speaking, overproduction, supply and demand contrast, is a kind of buyer's market, promote the price drop, both forces have. In a period of time, such as our economy is rapidly improving, then inflationary pressure is bound to be released, this pressure exists. But in terms of China's current situation, we should say that our production is sufficient, except for a small amount of energy oil, which is possible because of the limited reserves of natural resources.