Why do we need macro-control?

The state wants to engage in macro-control because:

First of all, market regulation is not everything. Some areas cannot be regulated by the market, and some areas cannot be regulated by the market.

Secondly, even in the field where market regulation can play a wide role, there are inherent weaknesses and defects in the market, including spontaneity, blindness and lag.

Finally, macro-control is conducive to helping people understand the weaknesses and defects of the market and ensuring the healthy and orderly development of the market economy.

Macro-control, put forward by economist john maynard keynes, is a kind of control to the national economy by comprehensively using various means, a necessary condition to ensure the coordinated development of social reproduction, and an important function of socialist countries to manage the economy.

Macro-control (referred to as macro-control) refers to the government's adjustment and intervention in economic operation and economic relations by means of policies, regulations and plans to ensure the sustained, rapid, coordinated and healthy development of the national economy. In market economy, the supply and demand of goods and services are influenced by price law and free market mechanism. Market economy brings economic growth, but it will lead to inflation. The recession after the climax makes the economy stagnate or even retrogress, which has a serious impact on social resources and productivity. Therefore, macro-control focuses on the economic operation of the whole society and artificially regulates the relationship between supply and demand; Maintain moderate growth of the national economy; Rationally adjust the industrial structure; Keep the overall price level basically stable; Achieve full employment of the labor force; Fair income distribution; Balance of payments.

Economists understand this word as macroeconomic policy. But in practical application, its meaning is vague. In the 1980s, there was an economic research department called Macro-control Department, which showed that the economic situation at that time still had a little reverence for macro-control. Later, it was renamed as "macro-control", as if our control over the economy was getting stronger and stronger. Macro-control has recently evolved into a long-term macroeconomic policy and must always exist. This formulation blurs the meaning of "macro-control" because macroeconomic policies are short-term in economics.