The Characteristics of Economic Cycle and the Complexity of Macroeconomic Regulation and Control in the Institutional Transition

Economic cycle is an inherent phenomenon in market economy. It adjusts the economy through the self-improvement function of market to achieve the equilibrium of economic activities. The reallocation of resources in the process of adjustment may have a negative impact on economic growth. With the deepening of marketization, the law of economic cycle has begun to play a role in China’s economy. An important task of macro-control is to reduce the negative impact of such economic cycle on economic growth through counter-cyclical operation. This chapter studies the performance, quantitative characteristics and formation mechanism of China’s economic cycle, and points out how to ensure the sustained and stable growth of national economy through macro-control according to the characteristics of China’s economic activities at the present stage.