Research On The Dynamic Mechanism Of China's Fiscal Policy, Monetary Policy And Economic Growth

Nowadays,China's economy has entered a crucially important period of transition development because it has been faced with more fickle domestic and international economic environment that is filled with uncertainty,many risks coexist on China's economic development has brought significant resistance.In 2016,the central government has made clear that China's economy should enhance structural reform from supply side.In detail,China's economy should achieve five goals of reducing capacity,reducing housing inventory,reducing leverage,decreasing cost of enterprises and making up for economic deficiency.Whether an effective policy to be implemented to realize sustainable economic growth and to keep a fine economic condition,which depends on coordination between fiscal policy and monetary policy.There are many deferent characteristics between fiscal policy and monetary policy,such as policy effects,the means of implementation and so on.Therefore,to achieve goals of expectation,the macro-control means should coordinate the relationship between fiscal and monetary policy.At present,economists insist that monetarist school and the new Keynesian school should be integrated with each other,because neither "single monetary rules" nor single fiscal policy could satisfy the demand of current social development.That will change when fiscal policy and monetary policy are complementary with each other and vary with time.How to match the fiscal and monetary policies to the steady growth of the economy,its fundamental lies in clarifying the relationship between the fiscal policy,monetary policy and economic growth.Based on the analysis of the domestic economic situation and foreign economic environment,this paper uses descriptive statistics and dynamic power system modeling method to found that China's fiscal policy and monetary policy on economic increase has the following characteristics.First,The fluctuations of China's M2,GDP and fiscal deficit are 261.8,47 and-0.053 Since in 1978.This shows that the money supply M2 volatility is the largest,followed by the medium volatility of GDP and the smallest fluctuations for the fiscal deficit.The variation coefficients of M2,GDP and fiscal deficit are 1.54,1.32 and-1.91.This displays that the dispersion degree of GDP is the smallest,and that the dispersion degree of deficit is greater than M2's.At the same time,there is a synchronous relationship among China's economic aggregate,money supply and fiscal deficit.Second,China's fiscal policy effect on the dynamic mechanism of monetary policy and economic growth is directly.The dynamic mechanism of monetary policy effects on economic growth is directly;Effects on the dynamic mechanism of fiscal policy is through gross domestic product(GDP)as the intermediate mechanism of conduction,so the effect of fiscal policy is very small.China's economic growth effect on the dynamic mechanism of monetary policy and fiscal policy is also directly.Third,Separate change fiscal policy and monetary policy,whether it is a temporary change or continue to change,the effect of the use of fiscal policy is better than monetary policy.Change fiscal policy and monetary policy at the same time,whether it is a temporary change or changes continuously,the variable changes of economic system are mainly based on the impact of fiscal policy.The effect of monetary policy changes can only produce very little on economic variables.Fourth,The proactive fiscal policy and monetary policy are contribute to economic growth,the negative of fiscal policy and monetary policy impedes economic growth.When the change in policy is temporary,it will only make the economic system from a transfer to another state;When the policy is lasting,it will make the economic system of state of constant change.Fifth,The fiscal deficit,money supply and gross domestic product formed by the equilibrium point of a strong attraction exists only in the dynamic system.The point of money supply and equilibrium value of gross domestic product and the actual value is close to 2015,the balance of the money supply to $23.416325 trillion,actual it is $22.354 trillion;Equilibrium value of GDP was $10.963031 trillion,the actual value of $10.8648 trillion.This shows that China's current economic growth has a strong resistance,but also demonstrates the weak economic growth in China at the present stage and the current situation of low efficiency of money..Therefore,at present,our country in the use of monetary policy and fiscal policy to adjust and control on macroeconomic growth,should give priority to with monetary policy,fiscal policy fine-tuning.And constantly select the camera,directional control.To ensure the economic operation in a reasonable range.