Fiscal And Monetary Policy Coordination

Fiscal policy and monetary policy are major components of modern macroeconomic management. They are the most important means of macroeconomic control. Modern history of the world economy, profoundly confirms the thesis, especially in the countries of the world's working together to address the subprime mortgage crisis, triggered the financial tsunami, since 2008, the coordination between fiscal and monetary policy plays a significant role.Therefore, confronting with the different fiscal policy and monetary policy of our country in different periods, matters of concern are:fiscal policy and monetary policy coordination achieved what effect? How to measure and evaluate the fiscal and monetary policy coordination in economic growth, total employment, price level, balance of payments and financial stability role and influence? These issues, to guide our future fiscal and monetary policies introduced highly theoretical and practical significance.In this paper, reference to a large number of domestic and foreign literature, based on the most recent period of fiscal and monetary policy coordination Abroad theoretical framework based on the use of econometric methods, especially the recent development of dynamic econometric analysis as a research tool to Effects of Fiscal and Monetary Policy Coordination in China's measure for the center, using our 1994-2009 fiscal, monetary and macroeconomic data in the quarter, we concern fiscal and monetary policy coordination on the theoretical analysis and empirical studies to quantify the impact of five policy objectives on fiscal policy and monetary policy, to comment the government fiscal and monetary policy coordination assessment results, and to make certain policy proposals. This paper is divided into seven chapters and an appendix.The first chapter is the introduction part, mainly related to some of foreshadowing of this article and presentation issues, introduced the theoretical and practical significance of the financial monetary policy coordination, introduced domestic and foreign literature on the typical co-ordination of fiscal and monetary policy, finally, introduced the structure of this arrangement and method, and summarized the main innovation of this paper for future reference. The first chapter of this book laid the foundation for later.The second chapter on the various economic schools of fiscal and monetary policy coordination point of view were analyzed, including the Keynesians, neo-liberal, socialist theory, public choice theory and game theory in the coordination of fiscal and monetary policy point of view.The third chapter analyzes the fiscal and monetary policies of the operating mechanism. Firstly, introduced the fiscal policy and monetary policy content, policy objectives and major policy control tools; secondly, analyze fiscal policy and monetary policy mechanism in IS-LM model and the IS-LM-BP model respectively, on this basis, analyze fiscal policy and monetary policy on the limitations; Finally, coordination of fiscal and monetary policy introduced "double compact model", "double loose mode", "elastic matching model" and "neutral policy model."The forth chapter analyze the effect of coordination of fiscal and monetary policy in China, firstly, review the 1991-2009 of fiscal and monetary policy in China in five stages, and then, based on the VAR model established in the economic growth, the price level and financial stable, we analyze the co-integration tests and impulse response. Quantitative study the effect of fiscal policy and monetary policy on the three major policy goals, analyze the fiscal and monetary policy coordination in these there areas.The fifth chapter we study the international experience of fiscal policy and monetary policy coordination, respectively, analyze the fiscal and monetary policy targets, instruments and historical evolution of the United States, Germany and Japan respectively, in this basis, reach a five-point worth learning experience.The sixth chapter we discuss the path of the coordination of fiscal and monetary policy, we select national debt, taxes and interest rates, the social security system and financial policy, and several combined department of several fiscal and monetary policies to analyze the path of fiscal and monetary policy coordination. Point out the specific implementation for the coordination of fiscal and monetary policies of China.In the seventh chapter, we summary the main points and conclusions of this paper, put forward the problems in the coordination of fiscal and monetary policies, and put forward some constructive proposals on the policy, in the hope of providing some reference to the fiscal and monetary policy coordination in the macroeconomic control to play a more active role in China.Finally, the paper summarizes important policies and monitories policy between 1991 and 2009, given in the appendix by way of the form. Fiscal and monetary policy coordination issue are an important part of macro-control, it is not only an evergreen in Economics research, but also a problem faced by every state in the practice, especially in the responding to the sub-prime crisis triggered by the global financial crisis, this problem becomes even more prominent.Objectively, fiscal and monetary policy coordination issues in the areas of multi-objective, complex variables, so although there are many studies, most research results limited in relevant theory research, and more is the fiscal policy and monetary policy research respectively, there is not so much Focusing on fiscal and monetary policy coordination, more importantly, due to data dispersion, not uniform and other reasons, fiscal and monetary policy coordination in the mathematical evaluation are even more infrequent. Overview the article, the main innovations include:Firstly, comb the theory of fiscal and monetary policy coordination systematically and comprehensively. This theoretical part of this article does not only include common Keynesian, liberal school, but also discuss the coordination of fiscal and monetary policy of public choice theory, game theory and the theory of socialist harmonious society.Secondly, the paper raises the goal of fiscal and monetary policy coordination innovatively. This goal of coordination of fiscal and monetary policy that include not only traditional economic growth, prices, full employment, balance of payments, but also the financial stability.Thirdly, the paper analyzes the fiscal and monetary policy coordination effect in the past two decades of China. With the analysis of the effect of policy coordination on economic growth, prices, full employment, balance of payments and financial stability, we know the history of the coordination of fiscal and monetary policy in China.Fourthly, the paper analyzes the fiscal and monetary policy coordination in promoting China's "going global" business development and promotion of urbanization. This article uses the methods of econometric, analyzes the effects of fiscal and monetary policy coordination for a comprehensive measurement and research, draw many meaningful conclusions. However, despite repeated craftsmanship, there are still many limitations and shortcomings in this article. First of all, due to time and space limitations, there is also much analysis not deep enough in many ways. Secondly, as the theoretical circles on the policy objective of financial stability are also very limited, these goals of financial stability while the macro-control study did try, but the discussion is still not deep enough. The third is the effect on the coordination of the evaluation, the paper initially through the establishment of a series of indicators to direct the performance of the coordination system to the effect of frustration too difficult, my original research ideas had to be adjusted to fiscal policy and monetary policy objectives of each of the macro-control effects of indirect evaluation of the effectiveness of coordination, that is later presented in this paper. The fourth is the path of fiscal and monetary policy coordination, the analysis is not deep enough, especially in the financial policy issues as the policy is the transformation of the financial problems facing all over the world, how to reflect the fiscal and monetary policy financial policy coordination, also need further investigation. Finally, results of recommendations to improve coordination, a lot of content is also not specific enough. These issues have to stay for further studies to overcome and improve continuously.