A Study Of The Impact Of Increased Fiscal Temporary Spending On Economic Growth In The Context Of The Financial Crisis

All along,the field of economics are very concerned about the relationship between economic growth and financial expenditure,which is to have a fascinated and confused problem.Most of the economics research results show that there is a positive correlation between fiscal expenditure and economic growth,but the summary from the practice experience is different.Financial expenditure as a mean of regulating the economy of our government,it can make the country's economy steady development,and alleviate the short-term fluctuations in the economy.The financial crisis that broke out in 2008 caused a serious impact in the whole world,and our country has not been spared.In order to resist the impact of the financial crisis,the Chinese government introduced the "four-trillion" investment fiscal policy,and the implementation of this policy ensures that the national economy is in a steady and orderly manner.This paper,firstly,through the year of 1978 to 2013 the relationship between China's GDP and fiscal expenditure,finds the basic steady growth,but the 2008 to 2010 period suddenly accelerating growth,significantly different from other years,so there is a big internal relationship between temporary spending and economic growth.Then using the Ramsey-CASS-Koopmans model to explain the effect of fiscal expenditure of temporary and permanent expenditure on economic growth and express when the national government spending includes investment.If the national government spending increases,then this will inevitably cause a smooth path change,and form a new stable path,and lead to the increase of social output.Then the financial crisis as an example,using the test method of DID measurement that implementation of the "four trillion" investment plan of China's GDP growth is higher than that the GDP growth in the United States did not implement the investment plan.It shows the correctness of the implementation of the "four trillion" fiscal policy.Finally,the advice given is appropriate to strengthen the proportion of economic construction expenditure,not to let the government expenditure seriously crowding out of private investment,to further improving the proportion of social expenditure on culture and education,training more scientific and technical personnel,reasonable arrangements for the proportion of the defense expenditure,providing space for other fiscal expenditure,and appropriating to reduce the administrative expenditure,reducing the cost of administrative costs.If we meet the financial crisis again,we need to continue to implement a proactive fiscal policy and monetary policy.