Analysis On China's Monetary And Fiscal Policy During The Period Of Deflation

Since 1997,deflation has become an increasingly obvious economic issue, both internationally and in China. It is a problem that China has to confront in the new century on its way to reform and development, so, analysis about deflation is of both practical and academic significance. This thesis find theory support from westerly economics to demonstrate how to define the deflation and the consistency of deflation and money in short supply. The range and angle about our investigate of deflation fix on money supply and monetary policy. So, this thesis collect a lot of data, surround the money supply, price level, supply and demand all along to analysis our county's causes , development and the inherence relation of the money supply change and deflation. Then, it discuss the inefficiency of our country's monetary policy strategies of solving deflation, and thind is monetary policy transmit mechanism block is the reason of that inefficiency. So, this thesis advice a series of suggests to consummate monetary policy in deflation period, such as dredge monetary policy's transmit channel, advance transmit signal's delicacy, breed energy of policy handle object, and so on.Keynes think that country should count out active fiscal policy to conquer economic recession, and fiscal income and expenses also have tight relation with monetary supply and demand, so, this thesis open the deflation's investigation eyeshot up to fiscal policy. Because of debt crisis, our fiscal policy can't hold up a long period. Under this background, this thesis put forward many protests to perfect our fiscal policy, including cut part of tax, raise nation debt's effect, etc.