-- From 1991 to 1997, China pursued "appropriately tight" fiscal and monetary policies. It reduced interest rates and expanded money supply at first to revive the economy, but saw a record high inflation rate of 21.7 percent in 1994. The government managed to curb price hikes by keeping the growth of money supply and fiscal outlays within a moderate range.

-- From 1998 to 2003, China turned to an "active" fiscal and "prudent" monetary policy after the Asian financial crisis dragged down the economy and added deflation risks. Government spending was hiked and more debt was issued to fund infrastructure projects. Measures were taken to increase revenues of low-income groups and improve social welfare to stimulate domestic demand.