| After having experienced 'the high inflation' and 'the high growth' during 1992 and 1995, the economy in our country succeeded in reaching 'the soft landing', and transferred from the seller's marker to the buyer's marker. The Financial Crisis in Southeast Asia in 1997 had a significantimpact on our country--making export hard, making effective demandseriously scarce. There has been a continuing decline in price from the mid-term of 1997. The government employed positive fiscal policy and sound monetary policy as the main macro governing measures, when facing the emergence of the collapse of economic growth and the deflation. From 1998 to 2002, to some great extend, by taking this kind of policy mix our country had prevented herself from the Asian Crisis, kept steady growth in economy, smoothly improved transformation in economic system, and social steady progress. It proved that the government drew up a right policy mix and employed it in a good way. Of course, 5-year performance generated many problems, for example, personal consumption hasn't been really activated, the use of government bond lacks efficiency, the effect of deflation has not been eliminated completely, the cooperation between policies has not been perfect, etc. And the fiscal and monetary policies areonly the policies for managing the aggregate demand in a short term. After 5 years, whether the mix should be adjusted or not, and how to adjust it is not only the big concerns in economics, but also the schedule for the government. Premier Wen emphasized in government report, that we should pay more attention to macro governing, to our people. He also said that in order to better the macro governing, we should not only keep the continuity and stability of policies, but also adjust the policies according to the situation. While we want to answer the question, whether the policies should be adjust or not, and how to adjust policies, we should have a clear idea about the current economic situation.This paper analyzed this problem historically, contrastively, and experientially. According to logic system that" put forward question?analyze issue ? answer issue", analysis as follows:First, through general discussion of economic performance, I studied 3 main problems and pointed out that the social investment increased rapidly, but the growth in consumption cannot keep up with the growth in investment. At the same time, the evident decrease showed in employment elasticity, and risks existed both in inflation and deflation. In order to solve these problems, we should depend on the long-run transformation and the perfection of social market system. But except attaching much importanceto long-run policy, we should also use 2 main short-run means, i.e. fiscal and monetary policy. Based on this, I got a question: But how to adjust the current policy?Then, through the general discussion of the fiscal and monetary policies, I discussed the factors restricting the two policies when they are in use on the basis of their difference and connection.Finally, I began to explode the accorded match between the two policies according to the imperfection in employment of macro economic structure. The accorded match included 3 points: firstly, evaluating effect to national economy given by the economic disturbance; secondly, suggesting to enlarge the room for matching the fiscal and monetary policy; thirdly, suggesting to the concrete matching pattern of macro economic policies?positive fiscal policy and moderate tight monetary policy. |
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