Keynesians Can Not Save the Japanese Economy

The current global economic recovery is heavily dependent on the largest feature in the Government. Global financial crisis to "Keynesian" return again, he praised the "required state intervention in the economy to expand government spending, the implementation of the economic deficit, government spending needs to become part of the market is conducive to the growth of smooth, economic fluctuations brought down." Then time as a weapon against the crisis. Keynesian really can save the economy? Japan's 20 years of economic stagnation could probably provide the best lesson.

Since the creation of the classic western economics since Keynes, the total output or total income on the decision of the theme of the macroeconomic split into two parts, first to explain why the total output in the short term cyclical recession and expansion, two to explain the level of potential output growth, the former is known as the economic cycle theory, which was to become "economic growth" theory. As Keynes that potential output level is reached before the changes in aggregate demand, especially investment demand to total output changes play a decisive role, he is used to explain changes in aggregate demand fluctuations in the economic cycle, so it is called Keynesian as demand management, Keynesian demand management is considered good policy response to the crisis.

2008 outbreak of the financial crisis will mire the Japanese economy into recession, in response to the crisis, Japan's efforts to implement an unprecedented economic stimulus package, increased borrowing efforts, however, expansionary fiscal policy of large-scale Japanese long-standing problem of financial fragility increasingly prominent, leading to an accumulation of sovereign debt risk. Financial crisis, Japan introduced four consecutive stimulus plan, the scale of the total expenditure of 75 trillion yen, accounting for about 5% of GDP.

In the real economy in recession, private sector credit and demand contraction process, the public sector's anti-cyclical policies, and monetary policy easy to have a "liquidity trap", fiscal policy to curb the economic recession You output decline , lower asset prices, credit crunch and the impact of, for shortening the duration of the recession is indeed quite plausible, but also its enormous apparent negative resistance: This is equivalent to the Government originally scattered in various economic entities (such as financial institutions ) focused on the government a risk to spread the risk of the balance sheet increased as the concentration of assets and liabilities of the government sovereign risk, the direct result of the deficit and its financing costs increase the level of the public balance sheet continued to expand.

Japan's dependence on either government bonds or debt indicators have deteriorated sharply. As of the end of fiscal 2009, an increase of Japan's national debt balance of about 24.9 trillion yen, a record current total debt of about 871.5 trillion yen of debt dependence was 52.1%, compared with fiscal 2008 increases by 12.9 percentage points.

Unlike other countries, the Japanese deficit is cumulative, both cyclical deficit, a structural deficit, and these deficits and debt and deficit financing in Japan is closely related to long-term implementation, can be said that Japan called Keynesian deficit financing model. Deficit financing as a demand management policy, and its function with short-term aging. Once the expansionary fiscal policy a long-term, it will cause serious economic consequences.

Of the 20th century the early 90s, asset bubble Japanese economy hit hard. "Bubble economy" has been in the Japanese economy since the collapse of asset price contraction, as a large investment in equipment during the bubble reduction in the capital stock of the economic system needs to be adjusted. To save the economy, the Japanese government between 1992-1998 through tax cuts, increased public investment, purchase of land, etc., intensive Tuichu fiscal stimulus plan and injection Chaoguo GDP of 15 percent, about half as public investment. Ten years after 1992, Japan has carried out dozens of economic prosperity policy, and its size is growing. However, these economic measures did not make the Japanese economy into a dependent endogenous demand-led growth path, on the contrary Queshi financial and economic growth increasingly dependent on debt.

Protracted fiscal stimulus beyond the financial constraints the Government of Japan, not only did not achieve the intended purpose, instead due to the huge fiscal deficits boost interest rates, private investment has serious "crowding out", the actual GDP and potential GDP (full use of 1 can be produced from domestic GDP) gap is always high, resulting in lower per capita output. Japan's financial situation also makes a serious deterioration of the total national debt continue to rise over the past decade Japan has increased by 200 trillion yen. As the Japanese government deficit financing or through tax or through debt financing, or financing by the central bank increased the money supply. It is not hard to understand why the Japanese economy has been plunged into debt deflation model, that is "low growth, low inflation, low interest rates, high debt," the state has.

Indeed, Japan's debt situation is worst in developed countries. If we look at the proportion of GDP, total debt, total debt in 2009 Japan had reached a record 871.5 trillion yen, accounting for GDP, 174%, the highest in the OECD. With debt growing faster than the pace of economic recovery, weak growth in personal assets, Japan's national savings rate has dropped from 10.5% in 1998 to 2008, 3.3%, IMF is expected within a few years the Japanese savings rate turned negative trend is Inevitably, the capital and liabilities will be increasing the gap, the Japanese government's national credit will be hard hit, for many years supported by national savings model unsustainable debt, insolvent from the day of Japan's close.

Europe, Japan once again deep mire of debt so that we rethink the anti-crisis mechanisms, "deficit financing" as a demand management policy, and its function with short-term aging. "Deficit financing" should not be a long-term, once the expansionary fiscal policy, a long-term, it will cause serious economic consequences, weakening the regulatory function of fiscal policy. In the long term, to fundamentally overcome the economic downturn, we must shift from the traditional demand management to promote long-term growth of supply management policies, improved economic structure defects, in stimulating economic growth and balance the economic development between the search for new ways to

State Council in 2010 9 major tasks of economic reform - economic system, reform, task - construction

State Council executive will consider the views through the work of deepening the economic reform Wen Jiabao chaired a State Council executive meeting Considered and approved in principle "on the deepening economic reforms in 2010 the views of focus"
Premier Wen Jiabao chaired a State Council on the 28th executive meeting examined and approved in principle "on the deepening economic reforms in 2010 focused on the views of the work."
Noted that since 2009, all regions and departments in accordance with the Party Central Committee, will deepen the reform and ensure economic growth, structural adjustments and improve people combine Medicine Health system, a comprehensive transformation of value-added tax, oil prices and taxes, pilot the new rural social pension insurance reform and other key areas of significant progress, to boost social confidence, and promote steady and rapid economic development, protection and played an important role in improving people's livelihood .
This year is the "Eleventh Five Plan" implemented last year, is to continue to deal with international Financial Crisis and maintain steady and rapid economic development in a crucial year. Changes in mode of development must focus on promoting reform and improving people's livelihood, to sustain economic growth combined with economic restructuring, to improve government regulation and the role of the market to fully play together, to promote social development and innovation of the public service system combine to increase economic efficiency and promote social equity, to speed up the level of domestic development and opening combine to enhance, improve institutional mechanisms to enhance the development of internal motivation and capacity for sustainable development, to speed up the completion of the "Eleventh Five-Year" period of the reform tasks, "12 Five "plan to lay a solid foundation for smooth implementation.
Meeting identified key reform tasks in 2010. Of encouraging support and guide non-public economic development. Eliminate the factors of institutional barriers to private investment. Perfect for small business support policy. We must invest in state-owned capital to focus on national security and national economy of the important industries and key fields.
Second, deepening state-owned enterprises and reform of monopoly industries. Speed up the large state-owned enterprises, especially the central enterprises corporate parent level, the shareholding system reform, development pilot program, and three are integrated pilot, promoting electricity, railways, salt management system and the main postal sector reform.
A deep-water, electricity, fuel oil, natural gas price reform of resource products, the progressive implementation of urban sewage, garbage and medical waste treatment fees system. Fourth, deepen fiscal and tax reform
. Speed up the formation covering all government revenues and expenditures, complete and unified system of public budgets. Transfer payment system, a sound system of financial management below the provincial level. Put resources tax reform program, improving the enterprise income tax and consumption tax.
5 to deepen financial reform. Improve the financial system and financial regulation system. Amendment promulgated the "General Rules on Loans" and accelerate the policy reform of financial institutions, asset management company started commercial pilot transition. Speed up the equity investment fund system. Improve the rural financial system.
6 is to coordinate urban and rural areas to promote the reform. Deepen land management, household registration system reform, the establishment of a unified urban and rural construction land market and human resources market. Reclamation will formulate further accelerate the reform and development advice to start the reform of state-owned forest farms.
7 is deepening income distribution and social security reform. Speed up the income distribution policy adjustment system, improve the urban and rural pension insurance system. Comprehensively promote the medical and health system. Deepen Education Reform, development and implementation of national reform and development plan for medium and long term.
8 is a deepening of the administrative system, accelerate the transformation of government functions, focus on promoting the investment system reform, public institutions and administrative examination and approval system reform.
Nine foreign-related economic reforms deepen, accelerate the transformation of foreign trade development mode, and promote coordinated and sustainable development of foreign trade.
Meeting called for various localities and departments to reform in a more prominent position, to strengthen organization and leadership, pay close attention to implementation, to ensure that the reform has made substantial breakthroughs.

The Role of Financial Institutions in Helping Businesses Bloom

Every country depends on its economy, without a strong economy nations struggle to fight poverty and inflation. Having a strong economy means providing opportunities for growth and development of small industry and new businesses. Financial institutions by no doubt play a major role in the growth and development of small to mid size businesses, mainly due to the fact that it is these financial institutes that decide on the loans and the interest rates thus enabling business owners to make business decisions based on their approved loans. Considering the recent financial crunch several businesses have survived with the help of loans from financial institutes. Despite the presence of credit unions and financial brokers, commercial banks are most important in establishing and developing small businesses since banks provide not just credit but deposit and transaction services too. Banks act as financial intermediaries, they gather and produce information about borrowers and monitor them over time which allows banks to offer better incentives and financial products. Several sound projects are drained by small firms due to lack of funds, however financial institutes help businesses by providing funds for such projects. Late payments and bad debt are two of the most common causes of business failure in the UK, hence banks offer several different financial products to choose from.
Corporate Asset Finance offers an extensive range of financial solutions for all business requirements with extensive knowledge in a variety of industries, including asset acquisition and vendor schemes for manufacturers.
Beer & Partners is the leading source of Venture Capital and Business Angel Investment for growing businesses in the UK. They help with investor meetings and negotiations along with a wide range of financial products.
Barclays Bank offers different financial products to businesses. The bank offers startup businesses with a free account for up to 2 years, while existing businesses get a work with their own local business manager. Barclays Bank offers free marketing, legal and accounting advice, free seminars and workshops and business skills training, and free CreditFocus. CreditFocus is a comprehensive and easy-to-use online credit management service that protects businesses by checking, monitoring and chasing the businesses they trade, thus protecting them from bad debt and late payments.
The role of financial institutions in helping businesses bloom therefore is not just restricted to loans and interest rates but by offering several financial products to help establish new businesses and help large scale businesses avoid bad debt and bankruptcy.

What Role Finance Houses Play in the Economy

Financial Houses play an important role in the economy by providing financial services to new and existing businesses which help stimulate the economy. Though, majority of the financial houses are specialists in financial products and services the services provided varies from company to company, some offer business support services where as some offer financing.
Powerful nations have strong economy with industries and growth opportunities for new businesses. Some individuals have innovative and great business ideas but they require funds since not all are fortunate to have personal finance. Hence, it is the role played by finance houses and finance institutions that create opportunities for new businesses by providing funds since raising capital is not an easy task.
There are many finance houses in UK that provide not just financial assistance to individuals for startups, but they also provide background support in building businesses. A well known UK finance house, Maurice J Bushell & Co, provides a wide range of expertise in accounting and taxing, corporate financing and business support for startups. The business support services they provide to startups includes preparing business plans, assisting with company secretarial duties, registering new businesses with the Inland Revenue and, where appropriate, Customs and Excise, Establishing relationships with banks, insurers, etc, and providing general accounting and taxing facilities.
Another leading finance house in UK is Portman Asset Finance, providing finance for all types of business. They offer competitive rates and offer finance for a wide range of industries including garage, beauty, catering, fitness, soft play and IT. They also offer leasing options for businesses that prefer leasing over spending capital on equipment. Leasing equipment helps businesses benefit from tax relief and allocate the equipment cost elsewhere.
UK has opportunities for great minds with innovative ideas since there are financial institutions that provide funds to individuals with limited or no personal finance which can be a major setback.

Our Views on the recent banking reform proposals totally missed the mark

Big banks are today's designated villains, widely blamed for creating the financial crisis and criticized for sopping up government bailout money and then indulging in a new orgy of extravagant bonuses. To prevent the banks from acting carelessly and taking excessive risk, President Obama has proposed restricting bank activities, like prohibiting them from trading for themselves and limiting the size of liabilities. These proposals, made late in January of this year, come on top of others: a $90 billion tax over 10 years on the 50 largest banks to pay back bailout money; efforts to assure executive compensation doesn't encourage excessive risk taking; and a proposal for a new consumer protection agency, among others.
"While the financial system is far stronger today than it was one year ago, it is still operating under the exact same rules that led to its near collapse," Obama said in announcing his proposals. He went on to tap into populist, anti-bank sentiment, noting the banks are making record profits while refusing to lend to small businesses, that they are charging high credit card rates and failing to "refund taxpayers for the bailout." He added that it was "exactly this kind of irresponsibility that makes clear reform is necessary."
But would the latest proposals, including the "Volcker Rule" named for their champion, Paul A. Volcker -- the former Federal Reserve chairman who is one of Obama's chief economic advisors -- really get at the causes of the recent financial crisis? The Volcker Rule, including the proprietary-trading restriction, has many high-profile supporters. But we at Blackhawk think it misses the mark by focusing attention on the now-blurred distinction between commercial banks, which take deposits, and investment banks, which trade on their own accounts and underwrite stock and bond issues. I personally believe that all the bank proposals of the Obama plan have nothing to do with why the crisis occurred - absolutely nothing. The crisis originated in the non-bank financial firms, firms like American International Group, an insurer, and Lehman Brothers, a financial-services firm that did not engage in commercial banking. Volcker has been pushing his ideas for at least two years. I am afraid the plan has always struck me as nostalgia for the 1980s.... It has little to do with the current crisis if any.
The proposals, which were announced early this year would prohibit institutions that take deposits -- commercial banks or firms that own them -- from making their own bets on stocks or other financial instruments, including derivatives. They would not be allowed to invest in or sponsor hedge funds or private equity funds. Obama also would limit each bank's share of total liabilities in the marketplace, much as regulations limit any single institution's market share of deposits. The proposals still have to be fashioned into Congressional bills, but they dovetail with a risk-reducing bill which passed the House last December. That legislation's prospects in the Senate are iffy, largely because of opposition from Republicans as well as some conservative Democrats. Critics think institutions that trade on their own accounts are essentially gambling with depositors' money, potentially spreading financial contagion when bets go wrong. Deposit-taking institutions rely on a public safety net, such as FDIC insurance that makes customers whole if a bank goes under. The Volcker Rule is based on the premise that if the public is at risk, it can be invoked to curb risk taking. Under Obama's proposal, the commercial banks would continue to be allowed to trade on customers' behalf. A recent article in The New York Times notes that many current Wall Street leaders oppose the Volcker Rule, but that some of their predecessors and other finance giants support it. The latter group includes financier George Soros, former Treasury Secretary Nicholas F. Brady, former Citigroup co-chairman John S. Reed, former Wall Street executive and Securities and Exchange Commission chairman William Donaldson, and John C. Bogle, founder of Vanguard Group, the mutual fund company.
Amid the Depression, Congress passed the Glass-Steagall Act, separating commercial and investment banks. This restriction was gradually whittled down until Glass-Steagall was repealed in 1999. In recent years, Wall Street's behemoths have engaged in both commercial and investment banking activities, even betting -- and sometimes losing -- vast sums on complex, poorly understood derivatives and mortgage-backed securities. A number of them, such as Citigroup, which was heavily involved in the mortgage-derivatives market, have required costly government bailouts in the financial crisis. The Volcker Rule is a small step toward restoring some separation between commercial and investment banking. It targets institutions like Citigroup, Bank of America, JPMorgan Chase, Wells Fargo and Goldman Sachs.
Some of Obama's proposals, including the $90 billion tax, are sensible. The tax seems perfectly reasonable .... The banks should have to pay that. It is a fact that states often impose special charges on insurers after a company fails. The idea of a tax on survivors to make up for losses is not a completely-out-of-the-question type of concept. It's done at the state level all the time. But, I still believe that the banking proposals miss the big picture. The centerpiece of the proposals, which involves restricting risky practices at commercial banks, would be hard to implement effectively for the simple reason it would be nearly impossible to distinguish between trades a firm does for its own benefit and those it executes for customers. What looks like a trade done in a firm's proprietary account can be part of hedging strategy tied to a customer's activities. I'm still totally scratching my head on that.
It is a further fact that the proposals do not offer a remedy to the problem of institutions deemed too big to fail, or those whose collapse might potentially take the economy down with them. It's all very well to say that once Goldman Sachs is no longer a bank holding company, it will no longer be bailed out. This assertion has no credibility in the wake of the bailouts of Bear Stearns, Fannie Mae and Freddie Mac and AIG. Each of these institutions received government help even though they were not commercial banks. These proposals don't address the underlying problems. A crucial factor that led to the crisis was the Federal Reserve's low-interest-rate policy and global imbalances, such as the build-up of currency reserves in Asia and the budget deficit in the United States. These proposals do absolutely nothing to address those issues. I strongly believe a much better system is needed for recognizing risks building up in the system, such as those created by mortgage-backed securities that contributed to the recent crisis. We have to have proper capital requirements that reflect the macro risk posed by these securities, and the loans that financial institutions hold. Hence, the Federal Reserve should play a stronger role in monitoring the ebb and flow of risk in the markets. The Federal Reserve should in fact be more alert to the macroeconomic risks in the system, and warn the financial intermediaries when those risks have increased.
Every Wall Street veteran out there knows that mortgage-backed securities, exotic derivatives and risky trading were not so much the cause of the financial crisis, as many people believe, but the result of two major underlying problems. The first was the Federal Reserve's policy of keeping interest rates extraordinarily low to help the U.S. recover from the technology-stock debacle at the start of the decade. The second was the huge build-up of financial reserves in China and other Asian countries, which created an enormous appetite for debt-related securities. Together, these factors caused a drop in lending standards and fed a housing bubble in the U.S. and some other countries. When the bubble collapsed, debt-related securities plummeted in value, sparking the credit crisis. There has been a tremendous focus on the private sector and what the private sector did wrong in terms of taking excessive risk. However, if the basic cause of the crisis was the real estate bubble and central banks played a role in creating that, it is really the public sector that took the main risks. Part of the problem is the tradition of independence at the Federal Reserve, which allowed Alan Greenspan, the Fed chairman at the time, to dominate rate-setting decisions. I believe it is desirable to have a better system of checks and balances to restrain risk taking in the public sector.
One possible reform would modify the Federal Reserve's function to place greater emphasis on the need to maintain financial stability. Currently, the Fed's chief emphasis is on maintaining a balance between inflation and economic growth. Why not also creating a "Financial Stability Board" with a staff and resources independent of the Fed and focused on threats to financial stability. Several representatives of this board would sit on the Fed's Open Market Committee, which sets interest-rate policy. To moderate the problem of global imbalances, the governance structure of the International Monetary Fund -- a source of emergency funds to troubled countries should be changed to give Asian countries a larger role. If these countries were assured fairer treatment when they run into trouble, they would have less need to self-insure by maintaining large reserves. That would reduce the fuel to feed excesses like the housing bubble in the West. Further, the Volcker Rule does not address the most important need: a way to shut down failing institutions in an orderly fashion, the way the Federal Deposit Insurance Corp. does with failed commercial banks. We need to have a plan for dismantling non-bank financial intermediaries if need be.
That could be done by giving the government authority to take over non-bank institutions the way it does with commercial banks, without waiting for a shareholder vote. This can be tricky with international institutions, since some countries could suffer more than others. This could be resolved by requiring that financial institutions use subsidiaries to operate in foreign countries rather than by establishing branches across borders. The subsidiaries would be regulated by the countries in which they operate.

use of the financial markets work to promote energy conservation - energy conservati

Energy resources, protecting the environment is to maintain the economic health of the basic conditions for sustainable development is to promote harmony between man and nature, build a socialist harmonious society important, insist on people first, to implement the scientific concept of development of specific expression.
  CPC Central Committee and State Council attached great importance to energy saving and emission reduction, has made a series of important decisions and plans. This year in May, the State Council and issued a "comprehensive energy conservation program of work" and to attach great importance to implement the plan, to further enhance energy conservation and emission reduction; in June, the formal establishment of the State Council Leading Group of energy saving and emission reduction, Premier Wen person in command. This indicates that increase energy conservation and emission reduction is before us a very important priority.
Financial system should always attach great importance to saving energy and financial services, conscientiously implement the State Council held a teleconference on energy saving. We should also strengthen financial institutions, from environmental protection and energy savings in the areas of social responsibility and risk prevention awareness, build effective information mechanism, and the environmental carrying capacity to match the capacity allocation to the market and policy support, the rationale Soon the price to play the role of the market based on angles, the use of financial markets to encourage and guide the optimization and upgrading of industrial structure and economic growth pattern.
First, strengthen financial institutions in environmental protection and energy saving aspects of social responsibility and awareness of risk prevention
Recent years, China's rapid economic growth, the construction has made great achievements, but also put in a lot of resources and environmental costs, economic development and resources and the environment conflicts intensify, the people reacted strongly to the environmental problems. This situation and the unreasonable economic structure, are directly related to the extensive growth mode. Do not speed up restructuring, transformation of economic growth, sustained economic growth difficult to sustain. 1995 submitted by the United Nations Secretary General Kofi Annan, the UN launched in 2000 "Global Agreement" clearly a corporate commitment to the environment of social responsibility and environmental challenges that enterprises should take precautions, should take the initiative to increase environmental protection responsibilities, to encourage non- harmful environmental technology development and promotion of content.
Today, on the protection of the environment, building a harmonious society and realizing sustainable development has become a whole community. Financial institutions should fully recognize the importance of energy conservation, and urgency of environmental protection and energy saving firmly establish the sense of social responsibility. Efforts to guide financial markets, financial institutions in building a resource saving and environment friendly society to play an active role in promoting economic restructuring and growth pattern, and promote economic development.
Commercial financial institutions in the face of environmental and energy consumption reduction when customers have problems, there must be awareness of risk. Read from the first quarter of this year, industry, particularly high energy consumption and high pollution industry, rapid growth, accounting for the country's industrial energy consumption and sulfur dioxide emissions nearly 70% of the electricity, steel, nonferrous metals, building materials, petrochemical, chemical and other major industry growth of 20.6 6 %, an acceleration of 6.6 percentage points. State Department explicitly asked the high energy consumption, high pollution and the excessive growth of the industry. As the policy-oriented adjustments, the sound legal system and increasing the degree of supervision and inspection of law enforcement do not meet the requirements of environmental protection and energy saving industries and enterprises will face more stringent policy environment. Financial institutions should deal with corporate clients such policies risk awareness, from the perspective of improving the quality of credit assets, should be on the high energy consumption, high pollution and high emissions to be behind the company's credit risk sufficient vigilance.
Second, we must establish a conducive environment protection and energy saving information system First, to strengthen window guidance credit policy. To implement the State Council's "comprehensive energy conservation program of work", the People's Bank, the relevant regulatory authorities and banking associations to strengthen the publicity guidance, suggesting that financial institutions issuing credit to fully consider how to control high energy consumption and high pollution industry, too rapid growth, accelerate the elimination of backward production capacity, the full implementation of key energy saving projects and promote energy conservation science and technology, highlight key enterprises improve energy conservation and vigorously develop the circular economy, and effectively improve the quality of credit assets.
Second, emissions and environmental law to corporate information and gradually into the enterprise credit system. In recent years, from the collection of credit information sharing banks started to adopt the banking credit system and gradually expand the scope of credit information has been gradually include business and personal credit, credit information and certain other information, is currently considering related to corporate emissions and environmental behavior of the relevant information. In the future, credit information system will further strengthen the tracking of key enterprises in energy conservation, and further credit for financial institutions to provide services to continuously improve the quality of assets of financial institutions; for the government, enterprises and individuals provide inquiry services, strengthen environmental protection energy conservation law enforcement.
Third, financial markets and the environmental carrying capacity to adapt to the capacity of re-configuration support
In recent years, due to the rapid development of a large number of manufacturing industries, China's eastern coastal environmental carrying capacity in some areas close to the limit. At the same time, less developed western region, industry, lack of funds nowadays. From a global perspective, the least developed countries and regions also very much hope that the international transfer of industry support. Therefore, promoting the optimization and upgrading of industrial structure and production capacity according to capacity of the environment for re-allocation has been a priority. Of course, in capacity re-allocation process, to avoid taking the old path of pollution first and then treatment.
In this capacity reallocation process, financial markets and the financial policies are likely to play a supporting role, widening financing channels, improve foreign exchange management, improve security support, and support businesses to better identify and play to their comparative advantage for enterprises "going out" to provide hybrid loans, syndicated loans, asset securitization, stocks, bonds and project finance and other financial instruments and financial markets continue to deepen reform of foreign investment in foreign exchange management, etc., for business and financial institutions greater capacity within the optimal allocation of environmental adaptation of the service.
4, straighten out the prices of resources and the environment play a role in the regulation of the market mechanism
First, the price mechanism into full play the role. By actively promoting the reform of resource prices, price liberalization, control, rationalize coal, refined oil, natural gas, water, electricity, mineral resources, the price, raise the standard means of sewage collection, using the price mechanism, through Bijiaxiaoying, the effect of high pollution, high energy consumption, high emission projects to promote environmentally friendly and conducive to energy saving off new technology