GDP 6% to 16%<br/>—Mathematical Reasoning of Economic Intervening Principle Based on Yin Yang Wu Xing Theory in Traditional Chinese Economics (II)
- 1 School of Statistics, Faculty of Economics and Management, East China Normal University, Shanghai, China
Abstract
GDP (Gross Domestic Product) is useful in understanding economic disease. By using mathematical reasoning based on Yin Yang Wu Xing Theory in Traditional Chinese Economics (TCE), this paper demonstrates that for the GDP inflation rate of economic society, the normal range of theory is [5.8114%, 16.359%] nearly to [6%, 16%], and center is 10.208% nearly to 10%. The first or second transfer law of economic diseases changes according to the different GDP inflation rate whether in the normal range or not. The treatment principle: “ Don’t have economic disease cure cure non-ill” ( 不治已病治未病 ) is abiding by the first or second transfer law of economic diseases. Assume that the range of the GDP inflation rate is divided into four parts from small to large. Both second and third are for a healthy economy. The treating works are the prevention or treatment for a more serious relation economic disease which comes from the first transfer law. And both first and fourth are for an unhealthy economy. The treating works are the prevention or treatment for a more serious relation economic disease which comes from the second transfer law. Economic disease treatment should protect and maintain the balance of two incompatibility relations: the loving relationship and the killing rela tionship. As an application, the Chinese GDP inflation rate is used for the water system of steady multilateral system.
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