This book deploys quantitative methods to study the operation of the Chinese economy as a whole since the reform in 1978, by combining a range of mathematical, algorithmic and computational methods to analyze rich empirical data, seeking to demonstrate the long-term economic trends and dynamics of economic growth and fluctuations in China.

Ninghua Sun is Professor and Associate Dean of the School of Economics at Nanjing University, China. He specializes in macroeconomics, as well as financial derivatives and financial risk management, particularly within the context of Chinese economic development.

1. Introduction 2. Intermittent Institutional Changes and Chinese Economic Fluctuations 3. Labor Market Distortions, Efficiency Difference and the Urban-Rural Income Gap 4. Government Investment Tendency, Financial Market Imbalance and the Urban-Rural Income Gap 5. Informal Finance, A Dual-Track Interest Rate and the Effects of Credit Policy 6. Habit Formation in Consumption, Monetary Policy and Chinese Economic Fluctuations 7. Money Supply and Chinese Economic Fluctuations 8. Energy Prices and the Chinese Macroeconomy 9. The DSGE Analysis with the CNY Real Exchange Rate 10. Foreign Direct Investment and Business Cycles in China