Analysis Of The Proactive Fiscal Policy Theory, Experience And Direction

Chinese government announced activity fiscal policy against finance crisis in Asia and domestic valid demand lacking in 1998. Facing current complicated situation, what the trency of activity fiscal policy will be? The dissertation will discuss the issue.Activity fiscal policy is a special policy put into practice under special situation. Activity fiscal policy has theoric effect and international experience. In fact applying activity fiscal policy expand the theory of valid demand lacking. According to IS-LM ananysis, we can conclude the connection between fiscal policy effect and IS-LM curve. Activity fiscal policy' applying enhance social benefit and economic growth greatly for years . Of course , there exist all kinds of opposite effect. Therefore, several problems should be ananysized properly, such as crowing out, deficit budget, tax decrease. So, the point is that whether we can assess activity fiscal policy correctly. We should broaden our thread and try to realize the transition from activity fiscal to balance finance. In the future, social stability and economic development harmoniously will be our ultimately object.My paper includes three sections: 1.First section is theory basis of activity fiscal policy. 2.1n second section, using actual and concrete evidence in China,thedissertation further discuss the experience of activity fiscal policy. 3.Strategic suggestion which made for facilitating the development ofeconomic and society in last section is to setup balance finance, themost important issue is the problem of agriculture and public service.