Research On Impact Of Various Sector Debt On Economic Growth

This paper aims to study the impact of household sector,non-financial enterprise sector and government sector debt on macroeconomic growth in China.Compared with the existing research,this article on the basis of capital circulation model,combined with China’s national accounts(including nations balance sheet and cash flow statement)data provided by the accounting identity relationship between and among them the economic variables,constructs the Marxist capital cycle theory under the perspective of macroeconomic model,The value of each parameter in the model is determined by using the actual data and existing research in China,and the model is used for numerical simulation analysis to study the impact of each sector debt on economic growth.This paper studies the impact of debt shocks on macroeconomic growth by adding unexpected debt shocks into the simulation process.The results show that :(1)the impact of corporate sector debt will worsen the debt situation of the corporate sector,leading to the decline of corporate investment,which is not conducive to economic growth;(2)The impact of household sector debt will widen the income gap between labor remuneration and capital gains,and reduce household consumption,which is not conducive to economic growth;(3)Under the mechanism of relatively overpopulation,there is always downward pressure on the economy.Without the government’s regulation,sustained and stable economic growth can hardly be guaranteed;(4)Unexpected government spending and the corresponding government debt shock can increase the economic aggregate in the short term,but in the long run,it will lead to increased volatility of economic growth.This paper also analyzes the effect of implementing various policies on debt risk control by changing the corresponding exogenous parameters.The policy suggestion of this paper is that,in order to reduce the debt ratio and interest burden of various sectors,we should first implement moderately expansionary fiscal policy and maintain the soundness of monetary policy on the premise of ensuring no negative effects on economic growth.In the long run,we should perfect the stock market system,enhance the financing property of the stock market,encourage enterprises to finance more through stocks,and strengthen publicity to guide residents to borrow more rationally.