关键词: 政府权力 , 营利性扩张 , 通货膨胀

Abstract: From the perspective of government power, this paper established the objective function of central and local levels of government in the decentralized system, and drew the preliminary conclusions：long-term steady-state price level depended not only on the central and local levels of government debts, taxes and expenditure, but also on the effect of state-owned enterprises investment scale; central government investment, debt, profit and money growth had the relation to pushing each other; and local governments to expand investment with a strong competitive sources of financing monetary growth required to find ways to compete for bank loans, force the increase of monetary supply. Inflation was one major result of profit investment expansion of soft constrained government power. Therefore a necessary condition for controlling inflation was to design an institution that government could get some interests through controlling inflation, had incentive to reduce the scale of the government's profitable quasi-public investment, and to increase the pure public investment related to the national economy and the people's livelihood.

Key words: government power , profitable investment expand , inflation