on the basis of Keynes’ and Hayek’s economic crisis theory, this Paper makes a conclusion that China is facing a special economic crisis, which we call’ Mixed Depassion.Mixed dmpssion is usually caused by both reality faetor and montare fartor, it has two cforteristics as folfows: 1. Rae of capital gan has been keeping decreasing. 2, Monewi rate firstly increases and then decnaes- Acconiing to our resereh, the characteristics above have actually appeared in Chinese macraondric since 1993, so we believe that China is facing ndxed depression now.In order to cope with such a special econdric crisis, we have to make a series of econdric structure adjustment, tha is to say tha China needs econdric innovation, such as social security system, finance system, firm system and industrial structure and organization.
