Coordination of Monetary Policies and Fiscal Policies

In our country, with the increasing of economy marketization and opening degree, monetary policy and fiscal policy also has been in the process of dynamic change. Especially after the Asian financial crisis, on the background that our country’s saving exceeds investment in a long period, the connotation of monetary policy and fiscal policy coordination has changed greatly. Since 2007, to effectively cope with the current international financial crisis, China has made unprecedented effort to start a new round of macro-control. In the process, it is especially important to further improve the effect of the two policies to strengthen the efficiency with which the system is especially important. Central Committee and State Council issued a series of policies and the spirit of the document in time clearly pointed out this direction.

Based on the background of Chinese financial reform in the transitional period of marketization, this essay reviews and summarizes the related research achievements of modern macro-economic theory and practical experience of two policy systems at home and abroad, and puts forward the general analytical framework which is used to analyze the coordination between monetary policy and fiscal policy.

Contribution of the essay can be summarized as follows: First, a relatively complete and systematic analysis is made on monetary policy and fiscal policy coordination theory, which is favorable for further development of relevant theoretical research and practical work; Second, experience at home and abroad is summed up, and a series of policy recommendations is put forward to enhance the division and coordination mechanism of the two policy system; Third, the essay reflects on the deep-rooted reasons for enhancing the coordination of the two policy systems, which is different from the internal analysis on the coordination strengthening of the two.

Book Details

Author: Wang Xuxiang

Series: Contemporary Economics Series

Publisher: Truth & Wisdom Press

Pages: 449

Words: 316000