Fiscal Policy Research Of Effective Demand Growing

Reform and opening up, China continued to grow and presented cyclical change, consumption, investment and export total demand increased unceasingly, but after the transition period to market economy, rising unemployment, price level fluctuations. Caused by these macroeconomic phenomena underlying reasons behind the lack of effective demand in China. Reform and opening up, the government relaxed control on the economy, to promote rapid economic growth. However, in the 1990s, along with the market economy after industrialization process accelerating, effective demand shortage problem prompted the government and economists constantly about it, how to promote effective demand growth, has become a common foothold.According to the effective demand shortage problem and present situation ,the reasons of effective demand shortage can be divided into two stages. The first stage is discussed in the early 1990s to before and after 2000. This period are inadequate in three demand. First, the reasons causing the insufficiency of consumption in consumption on the unfair distribution of psychological factors, causing income gap, consumption structure and service structure deviation etc reasons; Secondly, the reasons causing underinvestment in centrally more consumption of joint action, system transformation caused unwell, small and medium-sized enterprise effective state-owned monopolies the investment insufficiency, caused investment demand barrier, foreign direct investment decline reasons; Finally, the causes of deficiency of domestic-demand has caused export products less competitive, exporters, foreign exporter pioneering object single reason such as inadequate. Second stage: in the 21st century. This period our three demand the non-balanced development. The specific performance: consumer spending and investment disequilibrium, investment local overheating, economic growth over-reliance on investment and export and consumption structure own "squeeze" etc. See not hard, insufficient effective demand in China's long-standing problem will be.According to China's socialist system basis points, to promote effective demand growth in China, and promote sustainable economic growth, the government role cannot be neglected. Based on the history of the development of some high-speed industrialized countries appear insufficient effective demand of government experience after the reference, combined with the Chinese government nearly 10 years the use of fiscal policy to promote our country the successful experience of effective demand that the use of fiscal policy to promote and practice of effective demand growth is most direct and effective means. The use of fiscal policy to promote effective demand three aspect development and balanced development measures include: consumer spending, should eliminate the bad expectations, improving consumer confidence, use tax policy adjusting income distribution, increasing the income of peasants and exploring rural market, improving consumption environment, etc.; Investment, built in private investment property rights protection mechanism, derate used to expand production capital investment income tax, a national or regional small and medium-sized enterprise guarantee fund, increase commercial bank credit support to small and medium enterprises, less of non-state enterprises greatly increased loan scale; Implementation of domestic-demand, export diversification strategy, optimizing export product structure, rational utilization of foreign investment, development foreign investment; Three demand, both promote upgrading of the industrial structure, will invest direction, promote people's livelihood steering and coordinated development of consumption and investment.Of course, vigorously implementing fiscal policy in the meanwhile, also should take the fiscal and monetary policy coordination implementation against cycle, but the main principle is: better progressly. This means that both stimulate or inhibit, finally is to realize the sustainable economic growth, this requires no matter in the face of any internal and external shocks, can adjust the three requirements, especially by the growth of domestic demand, promoting China's sustainable economic development.The twelfth five year plan pointed out:" insisting on expanding domestic demand especially consumption demand strategy, have to dig up fully the huge potential in domestic demand, tries to crack the restricted to expand domestic demand, and speed up the formation mechanism of system obstacle of consumption, investment and export coordination stimulate economic growth of new situation." For a period, the government "short-term adjustment and control policies and combine long-term development policy, strengthen policies, promote and coordination with fast yet steady economic development" as strengthen and improve macroeconomic regulation goal. Therefore, the use of fiscal policy coordination three parts of total demand is to promote the balanced development of effective demand, the important means to sustained growth.