Macroeconomic Insights - China's economy is entering a critical phase amid complex international and domestic transformations, emphasizing the need for a focus on domestic demand as a core driver of growth[1] - The "14th Five-Year Plan" must prioritize people-centered and high-quality development, balancing development and security[1] Theoretical Framework - Keynes' Effective Demand Theory highlights that economic growth relies on total demand, which is influenced by consumer confidence and expectations[2] - Empirical studies show that social security and employment spending significantly enhance consumption rates, with a 1% significance level[2] Microeconomic Considerations - Friedman’s Permanent Income Hypothesis suggests that individual consumption is based on long-term income expectations rather than short-term income fluctuations[3] - As of the first eight months of 2025, private fixed asset investment remains in a contraction phase, but improved financing conditions are gradually boosting corporate confidence[3] Behavioral Economics - Prospect Theory indicates that individuals exhibit loss aversion, which affects their consumption and investment decisions, leading to a preference for saving in uncertain environments[7] - Enhancing policy certainty can effectively stimulate domestic demand by increasing consumer and corporate confidence[7] Strategic Recommendations - The upcoming "14th Central Committee" meeting is a strategic window for planning the "15th Five-Year Plan," focusing on stimulating domestic demand through institutional and policy design[8] - Aligning macroeconomic strategies with public sentiment is crucial for fostering consumption and investment, ultimately driving sustainable economic growth[8]

Core Viewpoint - The articles highlight five essential economics books that are foundational for understanding economic principles and theories, emphasizing their historical significance and impact on the field of economics [1][3][5][8][9]. Group 1: Key Books and Their Contributions - "Economics" (19th Edition) by Paul Samuelson and William Nordhaus is a classic textbook that has sold over four million copies globally, significantly influencing generations of economists, particularly in China [1][3]. - "The Wealth of Nations" by Adam Smith is regarded as a cornerstone of modern economics, introducing the concept of the "invisible hand" and is considered one of the greatest books in history [3][5]. - "The Theory of Economic Development" by Joseph Schumpeter is recognized for introducing the "innovation theory," linking innovation with economic development and cycles, and remains influential in contemporary economics [8][9]. - "The General Theory of Employment, Interest, and Money" by John Maynard Keynes is pivotal in macroeconomics, proposing the effective demand theory, which argues that insufficient demand leads to unemployment and economic downturns [9][11]. Group 2: Historical Context and Impact - The 19th edition of "Economics" incorporates contemporary economic data and discussions on monetary policy, economic growth, and inflation, reflecting the changes in the economic landscape [3]. - Adam Smith's "The Theory of Moral Sentiments" is noted for its moral framework that complements market economics, emphasizing the importance of equitable distribution of economic gains for social stability [5]. - Max Weber's "The Economic History" provides a comprehensive analysis of the evolution of the world economy, particularly the origins of capitalism, and compares various economic systems [7].