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CPI from 2% to 5%– Mathematical Reasoning of Economic Intervening Principle Based on Yin Yang Wu Xing Theory in Traditional Chinese Economics (II)
International Journal of Health Economics and Policy
Volume 5, Issue 2, June 2020, Pages: 31-48
Received: Jan. 13, 2017; Accepted: Dec. 18, 2017; Published: Jul. 28, 2020
Author
Yingshan Zhang, School of Statistics, Faculty of Economics and Management, East China Normal University, Shanghai, P. R. China
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Abstract
CPI (Consumer Price Index) 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 CPI inflation rate of economic society, the normal range of theory is [1.8828%, 5.2216%] nearly to [2%, 5%] and the center is 3.2741% nearly to 3%. The first or second transfer law of economic diseases changes according to the different CPI 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 a CPI inflation rate is divided into four parts from small to large. Both second and third for 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 relationship. As an application, the Chinese CPI inflation rate is used for the earth subsystem how to do works based on studying the sick subsystem of steady multilateral systems.
Keywords
Traditional Chinese Economics (TCE), Yin Yang Wu Xing Theory, Steady Multilateral Systems, Incompatibility Relations, Side Effects, Economic Intervention Resistance Problem
Yingshan Zhang, CPI from 2% to 5%– Mathematical Reasoning of Economic Intervening Principle Based on Yin Yang Wu Xing Theory in Traditional Chinese Economics (II), International Journal of Health Economics and Policy. Vol. 5, No. 2, 2020, pp. 31-48. doi: 10.11648/j.hep.20200502.12
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