Empirical Study Of The Impact Of Fiscal And Monetary Policy To The Stability Growth Of China’s Economy

It’s of great importance to study economic growth. From reform and opening up for30years, China’s economy has become the second largest economy in the world. As important tools for macroeconomic control, the fiscal and monetary policies have played important roles. At present, the world economy must adjust its structure and the way of China’s economic development must be changed so that there are great significance to re-examine the theoretical relationship between fiscal-monetary policies and economic growth.Under the background of the "steady growth" and change the mode of economic development, the paper studies the fiscal-monetary policy and economic growth through using combinational methods of literature review and comparison analysis, theoretical analysis and empirical analysis, qualitative analysis and quantitative analysis. Following the principle from communality to particularity, the paper discusses the practice of domestic and international financial and monetary policies to promote economic growth on the basis of the literature and theory combing. The paper integrates knowledge of economics, cameralistics, science of banking, statistics and econometrics, and studies deeply the mechanism of fiscal-monetary policy to economic growth. And it builds single-factor model and multi-factor model about fiscal policy and economic growth, monetary policy and economic growth, as well as fiscal-monetary policy and economic growth.This article further enriches the theory of economic growth and government intervention theory. And it provides a theoretical basis for reasonable adjustment of fiscal policy and monetary policy in practice, and some suggestions to promote economic growth on the basis of the conclusion. Five approaches are included in the dissertation as follows:First, the literature and theory about fiscal-monetary policy and economic growth.Second, the practice of the domestic and international fiscal-monetary policy to promote economic growth, and summed up the experience and lessons learned.Third, the paper builds a single-factor model of fiscal policy and economic growth, monetary policy and economic growth, and empirical analyzes on the basis of the data between1990and2010years.Fourth, the paper builds a multi-factor model of fiscal-monetary policy and economic growth, and empirical analyzes on the basis of the data between1980and2010years.Fifth, the paper draws some conclusions based on the results of theoretical analysis and empirical analysis, and suggests some policy recommendations.The conclusions of research above are as follows:First, the role of fiscal policy and monetary policy on economic growth is effective, but sometimes it is limited.Second, the coordination with fiscal policy and monetary policy is necessary. While economic recession happens, the role of fiscal policy is better. While economic overheating happens, the role of monetary policy is better. The fiscal policy is better in the short-term, while the monetary policy is better in the long-term.Third, the harmonization of fiscal and monetary policy is better to control the economy.Fourth, the fiscal policy is independence and its changes will cause the following of the monetary policy. But the impact of monetary policy on fiscal policy is weak. On the other hand, the effect of monetary policy on the economy is significantly larger than the fiscal policy.The paper argues that monetary policy should be appropriate and flexible, fiscal policy should concern about the long-term economic development. We should further improve the study of mix mode about fiscal-monetary policy. In addition, we should improve macro market environment to achieve steady growth target through supporting for the real economy.Several approaches of innovations are achieved in the dissertation:(1) The innovation of research methods is the combination of qualitative analysis and quantitative analysis, theory and practice cases.(2) The innovation of research perspective is the combination of theory and practice, domestic and foreign, history and the present, model and empirical.(3) The innovation of research model is the combination of single-factor model and multi-factor model about fiscal policy, monetary policy and economic growth.It is necessary to further improve the paper in future. We have reasons to believe that the theory of macro-control will be further developed.