China's Fiscal Policy Under The Treasury-utility Analysis

In recent years, china keeps a good development under the circumstance that the world economy growth is being slowed down. To the increasing rate of Chinese GDP which maintains above 7%, the positive financial policy with national debts as the core performs a significant role. Since 1996 national debt scale enlarges fast. It is estimated that the national debts investment has increased the economy growth about 1.5-2%, and created about 7.5 million employments in accumulation, which is important to enhance the domestic demand. Along with national debts going deep into the national economy, each kind of questions begins to appear. The theory field has studied the national debts for a long time, and established an index system of scale. But the author thought we should combine with the specific situation in our country in order to better discuss those questions.This article can be classified into three parts, the first mainly talk about the basic theory of national debts. In this part it introduces the definition, the development of national debts' theory and the course of our country's national debts.The second part is basing on the IS-LM model and using history data, the article analyses the government purchase multiplier and crowd-out effect. And then investigate the current situations and effect of national debts policy. Through analyzing the factors influencing national debt policy operation results, I think: The national debt policy gives a great effect to economy development, but the operation system of the national debt still has several problems which need to improve.In the third part the article gives several relevant suggestions to the national debts operation mechanism:1,Increasing resident consumer's propensity to enlarge the multiplier of national debt.