The Effect Of Proactive Fiscal Policy On The Chinese Macroeconomy

Fiscal policy is an important method in which a nation uses its fiscal income and expenses to regulate the development of a national economy. In recent decades of our national development, we mainly use the proactive fiscal policy to guide our development. The positive effects of the proactive fiscal policy are tremendous, while the drawbacks or the economical risks such as the inflation and crowding out effect of this policy are also obvious to be the by product. In this situation, we should recognize the economical effects of the proactive fiscal policy and distinguish the drawbacks of which we use this inappropriately. In this meantime, a reasonable way to use proactive fiscal policy in order to adjust the structural of our economical development and push the economy in the right direction is quite significant.The thesis will focus on the relationship between proactive fiscal policy and the economy of Chinese. It will take both the qualitative and quantitative methods to analyze the effect of the proactive fiscal policy. In addition, the structural of this thesis contains question introduction, question analysis and problem solution in order to discuss and analyze the link between proactive fiscal policy and the development of national economy.The first part of this thesis introduces the background, purpose and the significance of this research, with the brief inspection of research thought and method. Secondly, this thesis introduces the basic theory of the link between the proactive fiscal policy and the development of the national economy, in order to make the theory foundation of this research. Thirdly, this thesis uses the recent data of the Chinese economical development to build up the empirical model of the link between the proactive fiscal policy and the national economic growth. We hope this can lead us to the truth of the effect between the use of proactive fiscal policy and the economic growth. Fourthly, the thesis will analyze the main problems in our economical development and national growth by taking the current economical situation into consideration. Fifthly, this thesis will evaluate the effect of the proactive fiscal policy, make the conclusion of such policy and give some suggestions about the proper use of the proactive fiscal policy. Last, there are conclusions of this research. What’s more, the thesis will look forward to the future development.