Research On The Use Of Fiscal Policy And Monetary Policy Coordination

It is indeed the case that effective and efficient application of financial as well as monetary policies is a traditional subject for economists' research. Such policies are the crucial measures which governments can take to regulate domestic economy. The ways in which governments apply these policies and, as a result, the influences it may have not only determine whether or not national economy runs steadily and normally, but affect the ability of a country to flatten the economy fluctuations and resist economy disks. Since the foundation of the People's Republic of China, different kinds of theories on the cooperation of financial and monetary policies have come into being in different stages as the significant development of economy and the gradual improvement of people's cognition. Owing to the open-door policy, China has achieved great success. At the same time, the contents of these theories are becoming more and more abundant and improved. However, it is a long way for us to establish perfect marked economy system. Policy-makers are facing a new challenge and demand of how to employ financial and monetary policies effectively and efficiently during the long-term transformation of economy system of China. In this thesis, I intend to analyze deeply the issue of how to utilize financial and monetary policies harmoniously. It contains five parts. Chapter One is about the basic concept and relationship between financial and monetary policies; Chapter Two is on the necessity and main modes of application of these two policies; Chapter Three is concerning the history of the development of such theories; Chapter Four is with regard to the practical analysis of the use of these policies; Chapter Five is anenst the strategic suggestions and realizable choices.