Research On Economic Effect Of Government Bailout Of Financial Crisis In The New-style Financial Crisis

With the extensive development of finance market, financial crises have taken place more and more often since the1970s. Under the prevailing circumstances of economic globalization and high-degree financial liberalization, the characteristics of financial crisis are obviously different from traditional financial crisis. It evolves into the new-style financial crisis. Traditional theories of financial crisis were basically focused on the reasons of crises through building different phase of theoretical models, but these academic achievements didn’t stop the explosion of financial crisis. So scholars have paid more attention to the problem of how to issue effective anti-financial crisis measures which will not only decrease the loss of the economy during the crisis, but also be beneficial to the long-run economic development.The sub-prime crisis of U.S. in April2007which finally turned to be a global financial crisis is a typical new-style financial crisis. Such new-style financial crisis took a huge toll not only on the U.S. economy and other developed countries, but also the emerging economies which haven’t totally open their finance market and with low-degree financial liberalization. Against this background, this dissertation studies the economic effect of government bailout of crisis in the new-style financial crisis. Through building a cost-benefit model, we use the prevention took by our government in the new-style financial crisis for empirical analysis, which include economic growth, fiscal cost and inflation cost analysis. The empirical results show that in the short-run, the adjustments of our macroeconomic policies and all the measures took by our government did play an important role in reducing the loss under the shock of this financial crisis. From a long-term perspective, our economy suffered the pressure of inflation in the post-financial crisis, while other long-term factors didn’t appear due to a relative short period after the financial crisis. Based on the above findings, finally, we give some relative policy recommendations:the time selection of exiting the government bailout and the structural plans of bailout which need to be taken the relationship between the real economy and the virtual economy into the consideration.