Fiscal And Financial Policy Coordination For Financial Institutions Rescue

Journal of Economic Literature is the most traditional themes of financial crisis. From a historical perspective, along with economic globalization, information technology, modern financial crisis broke out, from incentives, implementation mechanism, the affected areas, the extent damage, profound changes have taken place, more and more damage on the economy strong, This makes the government bailout of the financial crisis become an unavoidable issue.Finance is the core of modern economy. Financial institutions, credit the modern economy the central link in the chain. Financial crisis, the financial fragility of reason, a large number of problems financial institutions appear on the entire financial system stability, security and even economic system led to serious threats. The late 20th century, the financial crisis broke out, tend to frequent. According to World Bank statistics, in the late 70s of the 20th century to 2000, the world has erupted a total of 93 countries with systemic banking crisis in 112 games, there are 46 countries were 51 partial crisis. And since the 90s of the 20th century the financial crisis shows the new features, not only to increase the frequency of currency crises, and more dual-currency and banking crises occurred simultaneously, and that the banking system and foreign exchange markets also suffered a double blow. Double the crisis and its huge infectious, often leads to a large number of financial institutions in bankruptcy, has contributed to a problem financial institutions under the growing financial crisis, a government response to financial crisis in a very difficult problem.Despite the financial crisis in theoretical circles, the problem financial institutions, is let the market self-regulation or the existence of the controversial government assistance a long time, but the country is generally taken to the appropriate relief measures. The traditional aid model is divided into three levels: government bailout, industry assistance, self-rescue, proven, government assistance is the most direct and timely, the most dramatic way. Therefore, when the financial crisis becomes a public crisis, the Government rescues bear the brunt. Government rescue of the main financial crisis there are two categories:financial and central bank, the way relief are:fiscal policy and monetary policy. However, due to financial and central bank in a country's macro-economy in the functions, roles, policy implementation conditions and different emphases, so the two can effective implementation of the policy coordination, reduce the policy cancellation, join forces to solve problems has become a difficult and key. Governments and academics attach great importance to coordination of the two major policy and research. In the context of the financial crisis, the rescue of the problem financial institutions also faces these problems. Therefore, the crisis context of the problem financial institutions, financial aid, and the coordination of monetary policy has very real significance.It is based on the above considerations, this paper uses historical analysis, case analysis, empirical analysis method, analysis of problem financial institutions face different problems of aid policy with model and by constructing a series of evaluation index system evaluate the effect of its.Introduction part of the first studies related to the basic concept and scope of the study were defined, and summarized the overall research framework. Paper, the problem of financial institutions includes savings and investment in financial institutions. After the financial crisis a problem of its aspects:the lack of liquidity, bad assets and capital of less than three. The problem is usually a crisis in the rescue of financial institutions is divided into two categories:on the sustainable management and sustainable management of the problem does not rescue financial institutions, and fiscal and financial aid policies have been defined. In order to close around the theme of analysis, research scope, the necessary assumption:the face of crisis choose the free government assistance rather than market clearing; who save-Finance and Central Bank; save who-the problem of financial institutions as a whole, makes the object of specific relief options analysis; assume that the government has sufficient financial resources to implement financial aid policy, the central bank has considerable independence, to make monetary policy effective, fast.Second, the literature review of the way, rescue financial institutions on issues of financial and monetary policy coordination theory, from the three levels analyzed. First, through financial vulnerability and financial fragility theory of the impact of the crisis mechanism, and analyze the crisis in the rescue of financial institutions on the issue of the inevitable conclusion, noting that the way aid is to improve the problem of financial institutions balance sheet. Second, by expectations and expectations of management for the Government as a relief organization to provide the theoretical foundation, some also raised the expectations of the management tools, and is expected to improve the Government's Evaluation of the role of aid policy, indicators. Third, fiscal and financial aid policy coordination, that division of labor and cooperation is analyzed theoretically. Division of labor depends on the lender of last resort and the final payment of both human functions:the central bank assistance early in the crisis, mainly to provide short-term lender of last resort liquidity; financial rescue in the crisis of the late mainly to the final payer resolve non-performing assets, insufficient capital, and bankruptcy issues. Policy with IS-LM model, short-term liquidity relief and equity capital injection of aid as an example.Thirdly, from a historical perspective, comparative analysis of the problem financial institutions assistance of international experience. Through history, the more typical analysis of major crisis assistance, assistance in the review of previous crisis, fiscal and financial policies adopted and cope with the situation. By the United States, Europe, Japan under the system of three financial aid on the problem of financial institutions to explain the different financial systems with financial policy in the special and general. The above analysis provides a wealth of factual basis.The fourth, including two chaptersâ…£andâ…¤, as one of the core of the article. The four chapter on the issue of sustainable management of the rescue financial institutions. Divided three ways:the lack of liquidity, bad assets and capital shortage, to analyze the fiscal and financial aid policy and coordination division. Chapterâ…£do not have a sustainable business issues delisting of the rescue of financial institutions, points to two situations:mergers and acquisitions and bankruptcies, to analyze the fiscal and financial aid policies of the division of labor and cooperation, and to draw general conclusions.Fifth, a theoretical analysis and empirical analysis of the method, the problem financial institutions to build effective aid policy evaluation system. This chapter is based on theoretical analysis, based on the inherent requirements of the function construct the evaluation index system. Evaluation index system is divided into three levels:impact assessment of the government's reputation, the problem of evaluation of effectiveness of financial institutions and government relief assistance to improve the results of the evaluation of market expectations. Finally, empirical analysis, the problem of financial institutions on China's policy of aid effectiveness was evaluated by analysis and draw appropriate conclusions and recommendations.The research method, this paper theoretical analysis and empirical analysis, the combination of induction and deduction methods, to follow questions, analyze and solve the problem of thinking.The innovation lies in this article may:First, the study of Innovation:from fiscal policy and monetary policy coordination issues in terms of micro-financial institutions, relief, and coordination are divided into:the division of labor and the full text with the analysis of two meanings. Second, the use of macro-equilibrium model:IS-LM model, the micro relief of problem financial institutions to conduct a theoretical analysis of policy coordination, the core part of the analysis for the article provides a theoretical basis. Third, the research content of the innovation:aid in the crisis, the issue of sustainable management of financial institutions and non-divided into two categories to the implementation of sustainable management, and assistance for different objectives and targets put forward specific policy coordination measures. Fourth, build rescue effects of policy coordination in the evaluation system.