| As a quantitative analysis method, Computable General Equilibrium Model has become an effective instrument of policy analysis and simulating forecast. The endogenous models are based on the mutual influence between economic sectors, simulated, analyzed the influence of policy-making, market operation and the change of economic behavior. This method has been widely used in economic, trade, energy, tax and policy setting. With the development of financial markets, the financial behavior of economic subject and financing of financial institutions are playing more and more important role in the economic operation. For this purpose, this article builds a FCGE model to simulate the financial policy influence.There are a lot of shortcomings in the original static FCGE, this paper makes improvements are as follow: first, optimizes the financial accounting matrix, so the financial account and current account are related closely; secondly, we give up the hypothesis that the price of the factors are fixing, let the price fully endogenous and analyze the demand-supply situations and the efficiency of using factors which based on the endogenous price; and finally, introduces the “Money Multiplier” and “Transaction Equilibrium” equations in the modeling process, associate the broad money with GDP and the price, make the relationship between broad money and the price more clear. By comparing the simulation results with actual economic performance, we reach the conclusion as follow: increase the money supply will increase the labor remuneration and reduce the capital returns; on the other hand, no matter easy or tight monetary policy, compared to other industries, agriculture industry is more sensitive to the credit support policy, the fiscal investment in agriculture in a low level, in addition, the effect of reserve fund is far stronger than currency issue, regardless of what kind of easy monetary policy, increasing of credit assets are less than money creation, a series of discredit problems aroused in the process of credit. Last, China’s current economic growth model is still capital intensive rather than labor intensive.The basic framework is as follows: first, I introduce the conception, research methods and innovation for the general overview; Chapter 1 is the overview of the literature, it traces the history and development of CGE model, and the research and application of the financial CGE model; Chapter 2 introduces FCGE model basic data part, including the construction of financial accounting matrix(FAM), account Settings, data acquisition and FAM smooth technology; Chapter 3 discusses the blocks in this model, including input-output block, price block, income and expenditure block, financial block and closure block, the parameters also calibrates in this part; Chapter 4 calculated the situations of monetary policies changes, such as exchange, reserve requirement ratio changed and cash raising, and analyzed the results; The last chapter has summarized the results, and discussed the significance of FCGE model. |
