| The Sub-prime Crisis which broken out in the early 2007 not only brought turmoil in global financial markets,and hit the real economy of global seriously. With the continued deterioration of the crisis and the recession of global economic,the crisis has a negative impact of China's macroeconomic and financial. The sub-prime crisis not only has added to internal imbalances,including accelerated the process of China's economic growth slowing, affected the development of the domestic financial sector, slowed the growth rate of fiscal revenue, increased pressure on social employment,and deteriorated the situation of external imbalances, involving caused China's imports and exports continuing to decline, decreased foreign direct investment, increased the RMB exchange rate fluctuations. In short, the financial crisis has exposed the issue of domestic and international economic development,aggravated the contradictions of between them and increased the necessity of coordination between macroeconomic policy.Faced with such complicated domestic and international situation, China's macro-control policy has undergoned significant adjustments in 2008:from the beginning of the year " double defense" to mid-year "guarantee a control",and at the end of the year to "maintain growth, expand domestic demand."A State Council executive meeting held in the November 5, 2008, policy-makers has a major adjusted about fiscal policy and monetary policy.The prudent fiscal policy and tight monetary policy had been transformed to the positive fiscal policy and moderately loose monetary policy. Although the response to 97 the Asian financial crisis,we have made some achievements, but also have some problems.At the same time, in order to understand clearly the current situation ,compare the two crises and find when the two crises broke out, the domestic economic situation has the same points and differences.The same point are: (1) Before the crisis, the domestic both have emerged a certain degree of economic overheating.(2) Two financial crises both broke out in China's economic development zones in the down time.The differences are the export share of GDP and foreign-exchange reserve.The international background has been different in the main of crisis and the causes of the crisis,which resulted in the different in the scope and the depth of influence. This bring about not only the pressure on China's economy is far greater than a decade ago, and the impact of the crisis which spread of the credit market, but also spread to the capital market is deeper than the Asian financial crisis in 97.Therefore, the current fiscal policy and monetary policy are facing new challenges.To cope with the crisis and achieve the expected result of the policy,it is important that how to ensure that current fiscal policy and monetary policy can be a good mix of coordination.So,In the current situation, in order to improve the effect of policy coordination, (1) should be emphasize short-term options and long-term options of policy, the best approach is to consider both the immediate emergency and take into account the long-term sustainable,healthy and harmonious development of China's economy. (2) the concern of the domestic economy is far higher than that of the external economic , therefore,more attention to the external economic development will help improve the effectiveness of the overall policy mix. At the same time, fiscal policy and monetary policy should both take into account the internal and external economic development rather than a goal. (3)By strengthening information communication between the financial and the monetary sector, focusing on fiscal and financial reform and establishing a fiscal and monetary policy coordination committee to continue to enhance policy co-ordination of their own, while we must also strengthen international coordination of policies, that is, policies need to be more considerate to policy changes on their own foreign economic activity, the impact and the response from abroad. |
PDF Full Text Request