Macroeconomic regulation and control () often abbreviated Macro-control () refers to the use of direct

government intervention A market intervention is a policy or measure that modifies or interferes with a market, typically done in the form of state action, but also by philanthropic and political-action groups. Market interventions can be done for a number of reas ...

by the central government of the

People's Republic of China China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...

to cool down the

overheated economy Overheating of an economy occurs when its productive capacity is unable to keep pace with growing aggregate demand. It is generally characterised by an above-average rate of economic growth, where growth is occurring at an unsustainable rate. B ...

. The policy was first introduced in 1993 by

Zhu Rongji Zhu Rongji ( zh, s=朱镕基; IPA: ; born 23 October 1928) is a retired Chinese politician who served as the 5th premier of China from 1998 to 2003. He also served as member of the Politburo Standing Committee of the Chinese Communist Party (CCP ...

, Premier of the People's Republic of China and Governor of the

People's Bank of China The People's Bank of China (officially PBC and unofficially PBOC) is the central bank of the People's Republic of China. It is responsible for carrying out monetary policy as determined by the ''PRC People's Bank Law'' and the ''PRC Commercia ...

at the time. His policies included collective measures to constrain

monetary policy Monetary policy is the policy adopted by the monetary authority of a nation to affect monetary and other financial conditions to accomplish broader objectives like high employment and price stability (normally interpreted as a low and stable rat ...

, suppress real estate and

stock market A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include ''securities'' listed on a public stock exchange a ...

s, control

inflation In economics, inflation is an increase in the average price of goods and services in terms of money. This increase is measured using a price index, typically a consumer price index (CPI). When the general price level rises, each unit of curre ...

, lower supplies of

raw material A raw material, also known as a feedstock, unprocessed material, or primary commodity, is a basic material that is used to produce goods, finished goods, energy, or intermediate materials/Intermediate goods that are feedstock for future finished ...

s and reduce

domestic consumption Consumption refers to the use of resources to fulfill present needs and desires. It is seen in contrast to investing, which is spending for acquisition of ''future'' income. Consumption is a major concept in economics and is also studied in man ...

. The purpose was to achieve a so-called

soft landing A soft landing is any type of aircraft, rocket or spacecraft landing that does not result in significant damage to or destruction of the vehicle or its payload, as opposed to a hard landing. The average vertical speed in a soft landing should b ...

of an economy that was growing too fast. As all these measures can vastly affect the economy and political stability, macro-control has become a hot topic to economic and political observers of the People's Republic of China.

References

Economic development in China {{Econ-stub

See also

References