The Proactive Fiscal Policy Fade, Analysis And Policy Transformation

The government has practiced the proactive fiscal policy and monetary policy since 1998.It has played an important role in alleviating the economic declining and stabilizing the level of economy in the past six years. But the long-running of the proactive fiscal policy has brought many negative effects on economy When the proactive fiscal policy has attained to a certain degree and many indexes have shown that it is not used to economic development any more, proactive fiscal policy need quit. But it shouldn't quit too fast; there should be a transition process. During this period, fiscal policy need adjusted internally and the monetary policy should coordinate with it.There are many viewpoints on proactive fiscal policy fading. These viewpoints are divided into two groups. Some people advocated keeping on practicing proactive fiscal policy, others insisted that proactive fiscal policy should fade out. They have listed their own supporting points, but it is not enough in analysis by efficiency evaluation to proactive fiscal policy and there is no index system for measuring whether the proactive fiscal policy fades. There is not still a deep research on the shift of fiscal policy and monetary policy in the process of proactive fiscal policy fading. The research is important to policy orientation to Chinese economic development in the future.This thesis is based on the efficiency analysis of proactive fiscal policy. It establishes an index system for measuring the fading of proactive fiscal policy and analyses the fading opportunity. And there is a deep study on the shift of policies.There are seven parts in this thesis. At first, it is forward that shows the problem of proactive fiscal policy fading in brief. The first chapter is background and viewpoints. In the second chapter, it analyses the efficiency of proactive fiscal policy. The third chapter studies the necessity and trend of proactive fiscal policy fading, takes out the index system and analyses the fading opportunity. In the following two chapters, it is a study on the shift of policies. The fourth chapter is on the internal shift of fiscal policy. The fifth chapter is on the coordination and adjustment of monetary policy. At the last part, it is a review and summary above all.