Research On The Problems And Countermeasure Of Coordination Of Monetary And Fiscal Policies In China Recently

It is universally acknowledged that the government intervention to macroeconomic is necessary since the establishment of the Keynesian theory. As two of the vital tools of macroeconomic intervention policies, the coordination of monetary policy and fiscal policy will directly impact on macroeconomic greatly. They inherently have something in common, and both aim of the government macro-control goal. But there also are differences between them. The existence of similarities and differences between the two polices make their coordination become inevitable.Scholars and government in every country attach great importance to the research on polices coordination consequently. Theories are developing all the time as the economic environment changing, and thus, conducts practice. But practice can boost the development of research in return. Since the reform and opening in 1978, China’s economics has remarkable achievements, largely owing to the macroeconomic regulation practice. Domestic scholars focus their research on how to enact the optimal monetary and fiscal policy, how to implement the actions specifically, and thus, to advance the effect of their coordination, and finally achieve the macro-intervention goals.The impressive achievement we have in economics growth since 1978, includes the fast developing pace of macroeconomics, the huge increase of inhabitant income. But inevitably, there also are many problems within the economics development. In the economic growth by the investment and exports, development of all sectors of the economy’s not balanced. In the high-speed growth economic, the political system problems and the reality of China leads to the economic structure imbalance, and finally impact on the long-term development of China economics. The growth of economics accompanies with environmental destruction; with the slower construction of market environment than economic development speed, the market cannot regulate the economics spontaneously; Urban and rural and regional economic development is not balanced, residents the income gap widening, and, to some extent, even affect social stability. Past policy practice, two policies of great importance has not effective coordination in these fields, and even aggravate these contradictions issues.With the rapid development of our economy, our government pushes further to deepen the reform of our country, and the economy increasing link to external economics. Amid increasing economic openness will inevitably makes foreign economic situation has more and more influence on China. While the external environment of increasingly complex, it increased the difficulty and complexity of macro control, which requires our government and monetary authorities to improve the ability of coordinating monetary fiscal policy.This paper’s writing concept is firstly analyzing monetary policy and fiscal policy from the general theory, policy aim, policy tools, etc, and analysis of the similarities and differences of the two. Introduced two classic model of coordination of the two polices. Review the polices practices of recent years in China, analyzed the background, this paper policies adopted by the detailed introduction government policies and measures. In front of the theory and practice on the basis of analysis, summarizes our practice system and coordination problems. Finally, introduces the path of monetary and fiscal policy coordination, and combined with the practice of before, this paper puts forward some corresponding suggestions.