Research On Financial Control Of Local Government

With the further development of economic globalization, Chinese financial system isconfronted with fierce competition, and financial development is always accompanied byrelevant risks. As a result, local governments implement financial regulation measures inorder to maintain the economic and financial stability.Firstly, this article makes an introduction of defination， necessity and policyinstruments concerning financial regulation，then points out that there are financialregulations both in developing and developed countries. Secondly, some financialregulation theories are summarized，including Financial Depression，Financial Deepening，Financial Constrain，and the regulation thoughts in these theories are discussed in detail.Thirdly, this article analyzes the history of financial regulation in different countries, andderives a conclusion: due to the heterogeneity of financial regulation in different countries,a country which wants to learn others’experiences must enact financial revolution inprudential and orderly way in light of its own financial development level. Besides, thisarticle uses relevant data to test the effect of financial regulation after analyzing theregulation measures of Zibo city government. In the end, based on current situation, thisarticle summarizes the problems existing in regulation, and puts forward suggestions toadopt decent regulation measures to promote local development.The conclusions are as follows:Firstly, after analyzing current regulation in different countries, this article defines twokinds of regulations: one is active regulation in developing countries, the other is passiveregulation in developed countries.Secondly, the government should balance pros and cons in financial regulation whenconducting it.Thirdly, the emphasis of regulation has been shifted to micromanagement from macromanagement, and absolute financial regulation tends to be converted into relativeregulation.