Disquisition About The Relation Of Regional Financial Policy And Regional Economic Growth Of China

In the development of regional economics, capital factor is the most important restrictive one, while the way to solve capital restriction is fully bring finance into play. The functions of finance in the regional economics development are, on one hand, finance has a special polymeric function in the regional capital formation, which has a pushing effect for economic development; on the other hand, it can adjust regional economic structure obviously to realize the full use of social resources efficiently and effectively by utilizing the imbalance of currency and credit distribution. The demand and supply of financial resources are distributed unbalanced and regional finance has different levels and forms. Therefore, the regional financial policy has a great effect on economic increase.The financial policy in the system of regional economic policy has been ignored for a long time in China. During the planned economy, finance was only a tool for business accounting of material economy, which rarely could make active function to economy. While the macro-regulation system in China is basically in the guidance of the theories of Keynes school, therefore, the financial policy is less paid attention than fiscal policy in China. At present, with the sophistication of market economic system and the development of financial market and institutions, we now pay more and more attention to financial policies, which has a readjust effect on national economy and a trend of moving towards what monetarism has described. For example, the interest market is under reform now in China, which is decrease the intervene of government in financial region in order to make interest rate correctively reflect demand and supply condition of capital in financial market.This paper, named as Research On The Relationship Between Regional Financial Policy And Regional Economic Development, thoroughly analyzed and discussed the regional financial policy in China from many aspects in a creative way with a hope to promote and help the reform of regional financial policy and sustainable development of economy in China.