Study Of Fiscal And Monetary Policy Based On No Model Control

Through 29 years reformation and opening,the ability of macroeconomic control of our government is strengthened,macroeconomic control mechanism based on market economy was founded elementary.But how to use fiscal policy and monetary policy jointly is a urgent needed solved problem. Because macroeconomic system is a big complicated system and it exists nonlinear,time lag and time change,it is difficult to establish a applied macroeconomic model.Besides,through reformation embedding, industrial structure upgrading,and institutional innovation,model structure is changing.This puts forward rigorous request about control law for macroeconomic control,which not only adapts to parameters changes but also adapts to model structure changes.Firstly,this paper compared modern macroeconomic study model pattern Ramsey model with no model control in methodology.It was stated that macroeconomic study based on no model control is based on the causality ascertained by other studies, gets rid of complicated parameters identification process,and not only possesses merits of predigestion form demonstration analysis but also possesses merits of structure model demonstration analysis. Secondly,the theory basis of fiscal policy and monetary policy study based on no model control was introduced.It was stated that no model control law breaks through the restrict that mathematics model ought to be accurately founded.Its real-time identification and real-time feedback control makes the law possess structure self adapted ability, which offers the theoretic basis for adopting the moderate fiscal policy and reasonably tight monetary policy.The small parameter bound of no model control law was gained by applied stability theory.Thirdly, on the basis of no model control, this paper made macroeconomic base model IS-LM dynamic,and applied no model control on dynamic adjust of IS-LM model. Through simulation it is obtained that no model control has good tracing property and it can trace dynamic aim easily.The application of no model control on macroeconomy is feasible. At last,our country macroeconomic running instance and main problems were summarized .It is that our country macro-economy is going on high level, which fiscal output and money supply increased fast. From short term, it can also achieve the aim of high economic growth and low inflation, but from long term risk is so high and it is difficult to keep on going. Now our country's economy goes on with four problems: investment is increasing faster, currency fluidity is faster, trade surplus is increasing faster, and environment cost for economic growth is higher.The deep-seated reasons were analysed.This paper used AS-AD model based on no model control and proposed low level running on high economic growth and low inflation. Thus economy continual development will be guaranteed. Some advices were proposed to achieve economic development.Through simulation results and feasibility analysis,it can be gained that no model control is feasible to be used in macroeconomic dynamic control.