What does it mean that China s economy is facing a hard landing ?

A hard landing refers to the use of strong fiscal and monetary policies to reduce the inflation rate to a normal level in a relatively short period of time by sacrificing more national income. On the contrary, the soft landing, refers to the intensity of macroeconomic control measures taken to alleviate economic overheating, the soft landing is used less, the economic recovery may be slower but not large, the soft landing in a relatively long period of time using a continuous policy combination to reduce the inflation rate relatively smoothly, the advantage is that the income is relatively less sacrificed, the disadvantage is that the time is longer, and the influence of public expectations is larger, and may not be able to achieve the appropriate effect. For example, it brings deflation, rising unemployment, ** deficits, and so on.

The term "soft landing" refers to a period of excessive expansion in which the operation of the national economy has steadily fallen back to a moderate growth range. The operation of the national economy is a dynamic process, and the trajectory of the economic growth rate from year to year is not a straight line, but fluctuates up and down around the potential growth capacity, forming a curve alternating between expansion and decline. The expansion of the national economy has a chain diffusion effect between departments, regions, and enterprises, and a cumulative amplification effect between investment and production.

When the operation of the national economy exceeds its potential growth capacity after a period of excessive expansion, breaking the normal equilibrium, the economic growth rate will fall. A "soft landing" is a way to fall back.

Here, too, the "soft landing" is relative to the "hard landing", that is, the "big ups and downs" approach. "Big ups and downs" are caused by excessive "big ups". The excessive expansion of the national economy has led to a great excess of its potential growth capacity and has seriously damaged the various equilibrium relations in economic life.

The use of a strong fiscal and monetary policy to reduce the inflation rate to a normal level in a relatively short period of time by sacrificing a large amount of national income has the advantage of striking hard and immediate, and often the policy objectives have been achieved before the public has time to anticipate enough, and the disadvantage is that the economic shock is greater. A soft landing landing adopts a continuous policy mix to bring inflation down relatively smoothly over a relatively long period of time, with the advantage of relatively less income sacrifice, and the disadvantage is that it takes a long time and is affected by public expectations with greater variables, which may not necessarily achieve the appropriate effect.

A "hard landing" means that the bubble has burst. And "China's economy is facing a 'hard landing'" is what Xie Guozhong said, which means: propaganda that China's economy is going to end, and Xie Guozhong's master can short China in the market panic to make a profit.

Inflation is serious, economic growth is slow, and CPI control expectations are not in line with expectations. There are many economic phenomena such as the lack of obvious expectations for national policy regulation and control.

The rate of economic growth has fallen too fast.

For example, last year it grew by 10 percent, but this year it suddenly fell to only 3 percent.

To put it simply, it is to brake sharply without going through a buffer period.

Meaning: Propaganda that China's economy is going to end, and Xie Guozhong's master can short China in the market panic to make a profit. .

Generally speaking, when the economic growth rate is too fast and there is serious inflation, a country will use contractionary policies to suppress inflation, but at this time, the aggregate demand of society will decline and the economic growth rate will slow down or there will be negative growth, which can be vividly called the economic "landing". However, if a country's policy is too tight, and a large amount of inflation is followed by a large-scale deflation, which leads to an increase in unemployment and a rapid decline in economic speed, this can be called a hard landing. If a country does a good job of implementing austerity policies, so that the economic rate of excessively rapid growth falls smoothly to an appropriate proportion, and there is no large-scale deflation and unemployment, it can be called a soft landing of the economy.

A hard landing refers to the use of strong fiscal and monetary policies to reduce the inflation rate to a normal level in a relatively short period of time by sacrificing more national income.

Soft landing, refers to the intensity of macroeconomic control measures taken to alleviate economic overheating, the soft landing is used less vigorously, the economic recovery may be slower but not large, the soft landing in a relatively long period of time using a continuous policy mix is relatively stable to reduce the inflation rate, the advantage is that the income is relatively less sacrificed, the disadvantage is that the time is longer, and the impact of public expectations is more variable, may not be able to achieve the appropriate effect.

What does it mean to have an economic hard landing:A hard landing refers to the phenomenon that economic growth is not only a short-term downward wave movement, but also cannot return to its original high point within 2-3 years. and soft landings, etc.

Soft landing: Short-term downward revision of economic growth. After the downward adjustment, it can be picked up.

Within a year, it will reach or even exceed the highest level before **. To borrow the concept of econometrics, a soft landing is a short-term downward random fluctuation of economic growth, without involving a structural break in growth.

Structural fault: refers to the long-term downward wave crawl of economic growth, which cannot return to the original high point within 2 to 3 years, or even never return to the original high point.

Hard landing: Economic growth is not only a short-term downward wave-like movement, but also cannot return to the original high-skinned jujube point in 2-3 years. At the same time, downward adjustments are often unplanned, and there is no way to control them artificially.

Therefore, the magnitude of the downward adjustment is relatively large, not a random simple fluctuation, but a fierce downward adjustment. In econometric terms, a hard landing is the beginning of a long-term downward shift in economic growth, resulting in a significant structural break.

To put it simply, economy is the general term for the production, circulation, distribution, and consumption of all material and spiritual materials by people. This concept refers to the management of a family's property at the micro level and the national economy of a country at the macro level. In this dynamic whole, production is the foundation and consumption is the end.

Economy is the creation, transformation and realization of value. The behavior of human economic living is the activity of creating, transforming, and realizing value to meet the needs of human material and cultural life.

There are 3 differences between an economic hard landing and a soft landing:

1. The two are essentially different:

1. The essence of the hard landing of the economy: It refers to the phenomenon that economic growth is not only a short-term downward wave movement, but also cannot return to the original high point within 2 or 3 years. and soft landings, etc.

2. The essence of a soft landing of the economy: It refers to the smooth decline of the operation of the national economy to a moderate growth range after a period of excessive expansion.

Second, the occurrence of the two sutras is different:

1. The occurrence of a hard economic landing: If a country's policy is too tight, a large inflation will be followed by a large-scale deflation, resulting in an increase in unemployment, a rapid decline in economic speed, and a hard economic landing.

2. The occurrence of a soft economic landing: If a country implements a good austerity policy, the economic rate of excessively fast growth will steadily decline to an appropriate proportion, and there will be no large-scale deflation and unemployment, and an economic soft landing will occur.

3. The roles of the two are different:

1. The role of a hard landing of the economy: Adopt a strong fiscal and monetary policy to reduce the inflation rate to a normal level in a relatively short period of time by sacrificing more national income.

2. The role of the economic soft landing: the intensity of the macroeconomic control measures taken to alleviate the economic overheating, the strength of the soft landing is smaller, the economic recovery may be slower but not large, the soft landing adopts a continuous policy combination for a relatively long period of time to reduce the inflation rate relatively smoothly, the advantage is that the income is relatively less sacrificed, the disadvantage is that the time is longer, and the influence of public expectations is more variable, and may not be able to achieve the appropriate effect.

1. We can compare it to an aircraft. A hard landing of a vehicle can cause it to be damaged, while a soft landing can result in aftermath or only minor damage, even in the economy.

2. The reasons are different. A hard landing is caused by tight economic policies, and the economy will have a greater degree of turbulence; The soft landing is due to the appropriate economic policy, so that the economic rate of excessive growth has steadily dropped to an appropriate proportion, and there has been no large-scale deflation and unemployment, and the economic soft landing has occurred.

3. The impact is different. A hard landing will have more serious consequences for the economy, and it will not recover in the long term; A soft landing can smoothly fall back into moderate growth range.