Research On Mechanism Of Fiscal Policy Under The Background Of Supply-side Reform

Since 2013,the collective leadership of the central government has made three major decisions on economic work.The first is to determine the market's decisive role in resource allocation;the other is to propose that China's economy presents a new normal,and makes a rational judgment on the slowdown in China's economic growth;and thirdly,it proposes to strengthen supply-side structural reforms.Enhance efforts to improve the quality and efficiency of the supply system,and propose corresponding treatment ideas and measures for the current status of the new normal economy.These three major decisions have defined the economic development of China under the new normal from three perspectives:concept,status quo judgment and policy response.This article will be divided into five chapters from the theoretical analysis of fiscal policy and supply-side reforms in the context of the new normal,starting from the analysis of the effectiveness of China's fiscal policy and policy support under the new normal.This article first analyzes the research status of the topic by Chinese and foreign scholars.From the perspectives of the new normal research,supply-side reform research,and fiscal policy effectiveness study,the western countries are ahead of China in the first two aspects of research,but are subject to free competition in the market economy.There are not many studies on the impact of ideas on policy choices.This provides necessary support for the study of foreign research results and the policy analysis under the new normal.Then,through expounding the basic theories and related concepts of fiscal policy acting on supply-side reform,and the economic significance of the new normal of the United States and other related theories,based on this,the characteristics of China's new normal economy and the policy support conditions for the supply-side reform since its introduction were introduced.Finished.Based on the comparison of fiscal policy before and after the reform of supply side,this paper analyzes the function mechanism and the role of fiscal policy in the context of supply side reform.On the whole,we still need appropriate stimulation of proactive fiscal policies.However,demand-managed fiscal policies have a limited role and they must make excessive use of supply-side fiscal policies.Afterwards,they reviewed the supply-side reform background of typical foreign countries(the United States,Britain,and Germany)and their experience in implementing fiscal policies to support supply-side reforms.At the same time,they also analyzed the cases of failures in supply-side reforms in Japan in order to provide supply to China at this stage.The implementation of supportive fiscal policies provides both positive and negative lessons.Finally,on the basis of the foregoing analysis,we summed up the specific contents of the fiscal policy needed for supply-side reform under the new normal of China's economy.First,the mistakes that should be avoided in China's supply-side reforms are determined.Second,it continues to focus on structural tax cuts,reducing production costs,and encouraging innovations.These three main points of the supply-side fiscal policy are at the same time;it is also proposed to be compatible with supply-supported fiscal policies.The policy system is mainly to deepen the reform of the fiscal system,further improve the market mechanism,and coordinate financial and monetary policies.