Study On China’s Macro-economic Policy In Financial Crisis

In 2008,outbreak of Subprime Mortgage Crisis in the U.S. evolved into the global financial crisis.The world economy are affected to different degrees, and the situation of the world economy has entered a downward cycle.As one of Emerging Markets,China was affected by a certain degree: Exports dropped sharply; A large number of coastal labor-intensive export enterprises stopped production or even bankrupted; Massive workers lost jobs. In such an adverse international environment, China’s GDP growth rate remained high at 9.0% level in 2008. China’s great achievements were not separate from timely macroeconomic regulation and control.The paper deeply analysizes the implementation effects of macroeconomic policies which were response to the crisis and the problems faced with China’s economic development at present. The paper points out that the 4-trillion-economic-stimulus-plan was effective in stimulating investment demand, enhanced capability of independent innovation, and promoted re-employment. But the negative impact was not small: Domestic demand was imbalanced; Small-and-medium-size enterprises’status was eroded; Growth of new production capacity is limited; And inflation expectation was increased. It is because the government’s macro-control policy had a negative impact in the implementation process, resulting in China’s economy has a series of problems: 4-trillion-investment-plan is mainly focused on the industrial sector, which was failed to effectively stimulate domestic consumer demand and also not conducive to China’s economic restructuring. Getting rid of the crisis, the United States’quantitative easy money policy and China’s moderately easy money policy led to excess liquidity, making the domestic inflation serious, and real estate prices climbing continuly. Coupled with China having implemented the extensive economic growth mode for a long time, environmental resources are deteriorating, so China is facing with economic restructuring.Therefore, learning from the experience of anti-crisis policy of many countries, Chinese government should properly handle the problems of balance of internal and external demand, configuration of foreign currency reserve assets, relationship between economic development and enviromental protection, residents’income, relationship between "Manufacturing" and "Manufacturing power", and balance of the virtual economy and real economy, etc. The paper puts forward relative suggestions: The government should implement policies of tax cuts to increase income; Improve the social security system to promote the growth of consumer demand; Promote the strategic adjustment of economic structure; Implement prudent money policy to curb inflation; Strengthen the regulation of the real estate market; Promote financial innovation steadily; Strengthen governmental supervision of financial markets, etc.