Macroeconomics Case Study

National Income Accounting: A Case Study of China

OR

Abstract:
After three decades of central planning it was time for China to emerge from isolation and become an important player in the world economy. Economic reforms since 1978 have taken China to a new trajectory of growth. Evolution into an open economy has synchronised the movement of macroeconomic variables like growth rate, inflation, and exchange rate, with the rest of the world. Any policy change in China now has its impact on the world economy.

Pedagogical Objectives:

• To understand the evolution of China's economic growth
• To debate on the inequalities between the geographical regions within China
• To understand macroeconomic concepts using China as an example
• To analyse the movement of economic variables in the background of reforms in China
• To understand the interrelationships between macroeconomic variables like GDP, GNP, potential output, inflation, interest rate and exchange rate.

Keywords : Macroeconomics Case Study, Economics, China’s Economic Growth, GDP (Real & Nominal, Potential & Actual), Inflation, Interest Rates, Exchange Rates, Economic Reforms of China, Income Disparity, National Income, Currency Revaluation & Devaluation