Theoretical Analysis and Practical Discussion of "Supply-side Reform"

Recently, supply-side reform has become the key word in the economic conference. Promoting the supply-side reform is a major innovation to adapt to the new economic norm, an active choice to adapt to the impact of the international financial crisis, and also an inevitable trend to adapt to the new normal state of our development. Through analyzing the current situation of China's macroeconomic, we found that China's goods and services market showing a "strong willingness to pay, high effective demand, low effective supply"; in a long period of time, it is difficult to expand domestic demand or external demand only depending on the policy. Then, the article argues the theoretical origin of supply-side reform. Finally, the article points out that promoting the supply side reform need to pay attention to three aspects: first, handle the relationship between supply and demand properly; second, pay attention to the "structural reform" of supply-side reform; third, emphasize the quality and efficiency of supply.