A new challenge in a low inflation environment Now let me proceed with a new challenge in a low inflation environment. During the past two decades, inflation has fallen to a low level in major industrial countries. A low rate of inflation itself now poses a new challenge of achieving and promoting sustained economic growth in the global economy.
Exchange rate floating helped upgrade the export model from simple processing to deep and intensive processing, extended the production chain, and improved division of labor, ultimately contributing to higher employment. According to the NBS, total employment increased by 16.55 million during the period from 2006 to 2008.