Conversion Of Macroeconomic Policy Under Supply-Side Structural Reform

As China's macroeconomic policy has been dominated by loose monetary policy for a period of time,it not only causes serious problems such as excess capacity,overstock of inventory,rising leverage ratio and increasing financial risks,but also causes problems such as unbalanced industrial structure,rigid management system and weak independent innovation ability.It can be seen that the main problems in China's economic development are not the total amount of problems,but structural problems,which need to be solved through structural reform on the supply side.In November 2015,General Secretary Xi Jinping put forward the concept of supplyside structural reform at the eleventh meeting of the Central Financial and Economic Leading Group,which requires us not only to expand overall demand moderately,but also to strengthen the reform of supply-side structural aspects in future economic work.Supply-side structural reform is a new concept and path of reform put forward by the Party Central Committee in accordance with the new stage and situation of China's economic development.The aim is to improve the quality of supply,optimize the mode of supply and adjust the structure of supply so that production and supply can better meet the increasing consumer demand of the people.Therefore,under the background of supply-side structural reform,we should timely transform macroeconomic policies.Emphasize the positive fiscal policy as the leading factor to solve the structural problems in the economic operation.In terms of fiscal revenue,we should focus on implementing larger tax cuts and fee cuts to reduce the burden of small and medium-sized private enterprises;in terms of fiscal expenditure,we should actively invest in the construction of pension,employment and public services,subsidize and support the development of small and medium-sized enterprises,so as to promote economic vitality and make the economy develop in a better direction.Although monetary policy cannot solve the structural problems,it should be moderate and stable in the process of implementation,grasp the strength and rhythm of regulation.