-price increase negatively affects output and investment, but positively affects inflation rate and interest rate. However, with the …, the impact on real economy, represented by real output and real investment, lasts much longer than that to price … through an investment change, increases steadily and exceeds that of short-term impact at the end of the second year …

The Chinese economy does still not qualify as demand-driven economy. Its growth is based on investment. In fact … successive waves of investment have emerged during the eighties and produced a piling-up of productive systems. A wave of small … national enterprises and entrepreneurs, a second large wave of foreign direct investment from overseas Chinese mainly from Hong …