Research On The Combination Between Fiscal Policy And Monetary Policy In China

Premier Wen Jiabao convenes in March 5, 2010 in the 11th National People's Congress third conference does in 2010 in the government work report pointed out that in 2010 our country must continue to implement the positive financial policy and the moderate loose monetary policy, processes maintains the economical steady quick development, the adjustment economic structure and the management bloating anticipated relations. At the same time, Premier Wen Jiabao in March 14, 2010 answered questions from reporters when pointed out once more, processes the economic development, the adjustment structure and manages well the bloating to anticipate these three relations must do maintain the policy the continuity and the stability, while continues to implement the positive financial policy and moderate loose monetary policy must act according to the situation the change enhancement policy pointed and the flexibility, grasps the policy the direction, dynamics and the effect. Thus it can be seen, the financial policy and the monetary policy in the government intervention, the adjustment macro economic are playing the noticeable influential role.This article while carries on the theory elaboration to the financial policy and the monetary policy, the financial policy and the monetary policy combination utilization's actual situation has carried on the review since to the reform and open policy, summarized the question which according to the experience over the years in two kind of policy mix utilization exists, and, in followed the country to implement the positive financial policy and under the loose monetary policy overall policy premise put forward the related proposal in view of the present existence question. The article mainly has carried on the related elaboration from four aspects.The first aspect carries on the brief theoretical analysis and the narration to the financial policy and the monetary policy. Financial policy's adjustment goal is the guarantee stability increase in economics, the price stability, realizes the full employment. When regulating economy movement mainly using methods and so on tax revenue, budget, national debt, financial shift achieves the anticipated target; Monetary policy's adjustment goal is disburses and the total demand finally through the currency supply capacity change affect society, thus affects the total economy movement. When regulating economy movement, rediscount rate and open market service methods and so on main utilization legal deposit preparation rate achieve the anticipated adjustment goal. The financial policy and the monetary policy have the different function, the financial policy through financial revenue and expenditure activity and the redistribution directly participate in the investment and to produce carry on the adjustment; The monetary policy affects in the market through the currency supply capacity the price level, thus achieves in the money market affects the financing main body to lend money the cost and the property choice behavior.Because the financial policy and monetary policy's adjustment domain and the scope are different, the policy goal emphasis point is different, the policy function process and the function mechanism are different, the policy accommodation mode way and the tool are different, the policy effect time lag is different, when carries on the economical macroeconomic regulation and control then requests two kind of policy mix utilization. Meanwhile through to IS-LM the model analysis, may obtain the financial policy and the monetary policy four kind of combination pattern, namely double pine, double tight, tight financial loose currency, loose financial tight currency four kind of patterns.Since the second aspect the financial policy which and the monetary policy actual result our country all previous years implements to the reform and open policy carries on the analysis. Since reform and open policy, for in the better solution economy movement appears each kind of question, our country has implemented the different financial policy and the monetary policy combination in the different period, 1979-1988 year overall implements the double loose policy, 1989-1997 year overall implements the double tight policy, 1998-2002 year overall implements the double loose policy, 2003-2006 years implement the double steady policy mix, 2007-2008 years implement the monetary policy which the steady financial policy and is moderately tight, in 2009 implements the positive financial policy and the moderate loose monetary policy until now. Through to all previous years currency composition utilization's analysis, as a result of the economical movement the internal and the external economy environment bilateral face sound, needs in the real economy regulation to carry on at the right moment to the policy the adjustment, namely the overall implements some kind of policy mix at the same time to coordinate other combination way the utilization, avoids the blind basis policy mix pattern implementation regulation, cannot act according to the real economy situation to make the suitable adjustment, causes to run counter with the original regulative goal, cannot achieve the expectation effect. The third aspect through to the financial policy and monetary policy's actual regulative analysis, had pointed out the financial policy and in the monetary policy combination utilization exists question. If both functional localization does not permit, causes the financial policy and the monetary policy in the respective regulative key point and the way slurred, regulates in the process utilization dynamics to be improper actually, creates the macroeconomic regulation and control expiration; The regulative division of labor is unclear, the function is not clear about the cause financial policy and the monetary policy has played the regulating economy structure the role, causes our country's industrial adjustment to be too slow, cause finally macroeconomic regulation and control expiration; The regulative function does not arrive, causes the macro economic to present the economic structure distortion, the economical malformed development phenomenon. The social fund total quantity swift growth, the fund scale terminal velocity increases at the same time, fund structure serious unbalanced, the fund flows blindly, the cause entire fund structure is unbalanced; Coordinate mechanism is not very full, presents the financial policy and the monetary policy communication insufficiency, the coordination is insufficient, the adjustment effect presented mutually the counter-balance, forms the joint effort with difficulty in the macroeconomic regulation and control.The fourth aspect according to the question which the financial policy and in the monetary policy combination utilization existed to propose the related suggestion, better promoted our country economical health by the time to develop fast. Must first establish and consummate the financial policy and the monetary policy combination mechanism, further deepens the financial policy and the monetary policy organizational reform, strengthens the financial policy and the monetary policy understanding and the Coordination, the guarantee financial policy and the monetary policy adjustment stability, the promotion financial policy and the monetary policy dynamic flexibility. Next basis now our country's real economy situation, when utilization enthusiastic financial policy and moderate loose monetary policy should pay attention to the moderate adjustment. Implements the positive financial policy at the same time, the possible arrangement fiscal budget, increases the financial policy support, to consummate the system of safeguards, to support"three agriculture"vigorously, standard government financing; When implements the moderate loose monetary policy, should dynamic assurance moderate loose monetary policy, promotion currency credit stable growth, the guarantee RMB rate stable, expand resident's consumer demand, try positively to optimize the structure of investment, the guard credit risk and the systematic financial risk and so on.