Research On Effect Of Chinese Fiscal Policy

Since Reform and Opening, Chinese Economy runs well, government plays a very important role in the macro-control. The effect of fiscal policy is one of the promoting forces to advance Chinese economic growth. Particularly in the financial crisis which happened in 1998 and 2007, the government carried out the active fiscal policy, assured the stability of macro-economy effectively. Our country is still in the pivotal period of adjusting structures and promoting development, we should better combine the macro-economy and the fundamental function of market, promote the development of socialist market economy. So, there are both theoretical significance and practical significance to analyze the macro-economic effect of fiscal policy.In this paper, the macro-economic effect of fiscal policy is analyses profound by both theoretical research and empirical research.First, combine the theoretical foundation of domestic and overseas, introduce the basic theory of fiscal policy and fiscal policy effects. Then, derive the multiplier of fiscal policy by the model of IS-LM.The second part, analyze the economy running situation since Reform and Opening, the fiscal policy implemented during the period, and the economic situation after the macro-control.The third part of the paper through establishing the model of IS-LM, calculate the multiplier of fiscal policy. Combine the economic data of 2008 and 2009, calculate the contribution to the economy of fiscal policy during the financial crisis which happened in 2007. Then, summarize the result of research, wish the result has the reference meaning in the future when the similar conditions happen.In the last chapter, after analyze the fiscal policy effect, put forward some feasible suggestions to the implementation of fiscal policy.