Abstract:In this paper,the authors fully affirm the positive functions of the moderate monetary policies carried by the central government in recent years first.And then they analyze and illustrate the reasons and mechanisms of the deflationary trend reappeared from last September till now by using the statistic datum according to the short  run policy operation requirements.They point out that it shouldn't redound to employ the redundant workforces,material and financial resources efficiently according to the actual GDP growth rate that lowered much more than the potential GDP growth rate in recent years.Based on these points they offer a series of suggestions for restraining the deflationary trend by releasing the monetary policy structurally under the basic framework of the moderate monetary policies.

Abstract:Financial innovations and growth of financial derivatives could be one of the most remarkable changes in the global economy (mainly in advanced economies) since 1970s. Nevertheless, this change has not yet been reflected in traditional IS  LM model. This paper introduces financial innovations into IS  LM model through three major channels such as the efficiency of transactions, interest rate elasticity of real investment, and interest rate elasticity of financial investment. The restructured model may both be taken as the adjustment of the neglect of changing economic reality in the traditional IS-LM model and the attempt to formalize the relationship between symbol economy and real economy in the era of financial globalization. The new model indicates that in the long run financial innovations could improve the output, while in the short run financial innovations have uncertain effects and possibly harm the economy. Thus only focusing on the positive side of financial innovations is misleading.

Abstract:This article analyzes the size effect and time effect of the stock market in China according to the case study on Shanghai stock market. We find that in China there is no January  effect of small firms, which is a universal phenomena in west countries. However, the size effect of small firms is evident, and the comparative yield of small firms in March and August is apparently higher than market index. Weak evidence show that small firms effect almost exist through the whole year after eliminating risk elements. Analyzing these anomalies, we think that the characteristic liquidity problems of small firms' stocks, which are caused by the complicated market structure and system background, are the inner reasons for the sustaining CARs in small firms.

Abstract:In this paper,the efficiency characteristics of the Chinese commercial banking sector are investigated. The study employs the translog productive models. Overall, slight economies of scale are reported for the first approach and substantial diseconomies of scale are recorded when the bad asset and the rate of loan for private enterprise are included. A substantial and speedy dispersion of working efficiency is observed for this sector with both model specifications. At last, we discuss our model's results and give our conclusions.

Abstract:It is the main point of this paper to test a hypothesis about the private enterprise finance decision. The hypothesis is that if the private enterprise does not take account of the cost of the rate and exchange, the capital market information disclose mechanism will be the main influence to their finance decision. The higher level capital market, the more information about management will be disclosed. The test draws a conclusion that information disclose will bring more risk to the enterprise. Therefore at this time the private enterprise will finance from the bottom capital market.

Abstract:The interactive relationship between private finance and small & medium  sized enterprises (SMEs) development is analyzed in this paper by the observations from Wenzhou Region. It is found that SMEs, especially the middle size group, have very obvious demands for local private capitals. On the supply side, an analysis is advanced about the scale and operation of private finance. The scale of SMEs' private finance in Wenzhou region is estimated more than RMB 23  5 billion. It is suggested that government should establish a diverse financial support system for SMEs, and transform the existing local private finance organizations into SME  oriented formal financial institutions.

Abstract:The nature of poverty in urban China is examined by means of a 1999 cross  section household survey covering six provinces.By combining income and consumption criteria,three types of poverty  ‘chronic’,‘transient’ and ‘voluntary’  are distinguished.A large proportion of the poor are in voluntary poverty,i.e.,have income above but consumption below the poverty line.The estimated consumption function shows the importance of income smoothing,of precautionary considerations in an increasingly insecure environment,of saving for investment opportunities,and of special needs related to the presence of children or sickness in the household.An exercies is counducted to compare the three types of poverty by decomposing the divergence in the consumption of each poverty group from its benchmark consumption.Predicted (in relation to actual) financial assets and predicted (as a proxy for permanent) income,and differences in special needs,are important in contrasting and explaining the three poverties.

Abstract:Trust has been widely recognized as “social capital”, a very important determinant for economic growth and social progress, complementary to physical capital and human capital. It is often argued that Chinese communities are low  trust ones and China is now in “trust crisis”. Using a cross  regional survey, this paper analyzes how trust affects regional economic performances such as GDP growth rate, size distribution of the firms, FDI inflow in China. The paper also shows that cross  regional differences in trust depends on possibilities of repeated transactions, marketization, transportation facilities, education, size of government officials, and so on.

Abstract:This paper analyses the correlation between Foreign Direct Investment (FDI) and open economic growth in three different income countries in the context of new growth theory. The research indicates that FDI generates technology spillover and technical progress and is an important spring of open economic growth. Open endogenous growth is driven by technical innovation and technology spillover of domestic investment and FDI. This paper sets up the model of foreign direct investment  led open growth and tests the effect of FDI on economic growth in a cross  country regression framework. The results of 65 countries show that the growth enhancing effects of FDI are more significant in high  income countries than those of middle and low income. In addition, FDI has positive effects on increasing total factor productivity and economic growth in China, which links scale of FDI inward and human capital.

Abstract:Knowledge complementarity is understood as the ultimate reason for strong increasing returns in knowledge economy, and complementarity can be hypothesized by super  modularity. With super  modularity and Tarski  Zhou fixed  point theorem, the conventional general equilibrium theorem can be replaced by equilibria  existence theorems of games on a concept-lattice. Pricing of intellectual property rights is understood in this paper as a game on a complete concept lattice, therefore can be analyzed within the Tarski  Zhou framework. There are many applications with this new approache, but mainly one can establish what Becker did for partial  equilibrium analysis the Chicago “producer  consumer choice model” for the general equilibrium case.