A Study On The Collocation Of Fiscal And Monetary Policy In China

Angles of study on the mix of fiscal and monetary policy is very rich, the role of fiscal policy and monetary policy in the determining of price in an important one. First, this paper, by using the first quarter of 2000 to the second quarter of 2013 data, using the time series measurement methods to analyze the fiscal policy, monetary policy impact on prices and the interaction relations, respectively, in order to clear the role of both in price decision space, in order to further study the mix of fiscal and monetary policy and price level decided to provide the reference.The mix of monetary and fiscal policy is classified into four categories:passive monetary policy and active fiscal policy、active fiscal policy and active monetary policy、passive fiscal policy and passive monetary policy、the active fiscal policy and passive monetary policy. Fiscal authorities (government), the monetary authorities (central bank), the behavior of game between the private sector determines the equilibrium price level path. Fiscal and monetary policy collocation relationship there is a one-to-one relationship with the equilibrium price level decision.The results show that in the two periods collocation relationship between fiscal and monetary policy in China all belong to passive and passive monetary policy, fiscal policy under such policy collocation, the equilibrium price level can’t decide. To improve the efficiency of macro policy regulation, realize the goal of price stability, in terms of fiscal policy, the government should through the tax to strengthen the control of the debt, to prevent financial risks, passive fiscal policy status quo; In monetary policy, the gradual import to interest rates to inflation targeting framework, operating tools to strengthen the monetary authorities to maintain price stability commitment, from passive to active monetary policy.