China s choice of fiscal policy and monetary policy under the international financial crisis

International situation: The U.S. real estate and employment rates continue to decline, and the Fed is trying to revive the economy with QE and fiscal policy, and the idea has been determined, but the U.S. fiscal deficit is already high, but it must issue bonds (China, Japan and other countries have increased their holdings of U.S. Treasury bonds in recent months). So for a long time to come, we are likely to see the US dollar, **, and commodities flying together.

Domestic situation: 1Currency over-issuance, M2 has reached 71 trillion as of November, and the GDP growth rate in 10 years should be around 10%, in recent years, the ratio of M2 GDP has continued to hit new highs (see Figure 1), liquidity is obviously excessive, recent fried garlic, fried rice, etc. are examples; 2.

The continuous suppression of real estate policies has caused landlords to be reluctant to rent, and the rent is transmitted, bringing demand-driven inflation; 3.The rise in international energy and materials will push the PPI to continue to rise, leading to imported inflation (see Figure 2); 4.China's dual economic system determines that most of the industry economy is cold, while state-owned enterprises and other large enterprises have abundant capital chains, small and medium-sized enterprises are short of funds, in order to complete the loan task, banks take the initiative to request large enterprises to borrow, but they are reluctant to lend to small and medium-sized enterprises, resulting in a large number of small and medium-sized enterprises in China facing financial difficulties.

Policy tendency: do not mention the eight guarantees, and focus on inflation prevention.

Monetary policy: Some of the central bank's actions in recent months have clearly given a bias towards policy tools. Preventing inflation and controlling liquidity will be the main theme in 2011.

In the choice of means, we will try to avoid the adjustment of the first instrument, interest rate, causing uncertainty in many variables (such as currency multiplier) and squeezing the profits of small and medium-sized enterprises; It is more likely to use quantitative tools to deal with quantitative easing in the United States, open market operations** liquidity and an increase in the reserve requirement ratio, and the possibility of raising the reserve ratio to 25% next year is not ruled out.

China** has adopted a proactive and prudent fiscal policy.

It's so annoying, the teacher said that I failed before, and asked me to rewrite it, which is annoying

At first glance, you can see that it is the !! of Guangzhou Vocational and Technical College of Industry and Commerce

Proactive fiscal policy and prudent monetary policy.

Active, steady, prudent and flexible.

Hahaha, it seems that they are all from the same school.

1. Fiscal policy:

1. Reduce the tax revenue of private enterprises, increase the dividend ratio of central enterprises, and support the development of small and medium-sized enterprises;

2. Increase the best transfer payment expenditure to ensure that ordinary residents have a certain amount of spending power.

3. Levy real estate tax on the real estate market and regulate speculation in the real estate market;

2. Monetary policy:

1. Raise the reserve requirement ratio, reduce the M22 flowing into the market through the money multiplier, raise the interest rate on residents' deposit reserves, and ensure that the real savings interest rate of residents is positive;

3. The central bank issues bonds, ** too much currency, to ensure that the currency flowing into the market reaches a slightly stable amount;

4. Intensify the management of markets for agricultural and sideline products to prevent the decline in residents' living standards caused by speculation;

Fiscal policy is an integral part of the country's overall economic policy; Generally speaking, it refers to the guiding principles of fiscal work formulated by the state in accordance with the tasks of political, economic, and social development in a certain period, and it is to regulate its aggregate demand through fiscal expenditure and tax policy. ** General Cabinet through the adjustment of fiscal revenue and expenditure mainly include: change the level of ** purchase; change the transfer payment capacity of **; Adjust the corresponding tax rate.

The monetary policy is a policy measure used by the central bank to adjust the amount of money in order to achieve the established goal, which in turn affects the macroeconomic operation. It mainly includes two types of credit policy and interest rate policy. The differences between fiscal policy and monetary policy are as follows:

1. The main body of the policy implemented by the two is different; 2. The significance of the policy effects implemented by the two is not the same. 3. There is a big difference between the two in the mechanism of action. 4. The implementation methods and motivations of the two policies are also different.

Article 15 of the Constitution The State implements a socialist market economy. The state has strengthened economic legislation and improved macroeconomic regulation and control. The State prohibits any organization or individual from disrupting the social and economic order in accordance with law.

Fiscal Policy: Fiscal policy is a method of using the budget to achieve certain macroeconomic objectives through taxation and, through public spending on consumption and investment. Fiscal policy is divided into fiscal revenue and fiscal expenditure.

Fiscal revenues may include: taxes, profits, debts, and fees.

Fiscal expenditures can include, first, purchases, which refer to the spending on goods and services – the purchase of armaments, the construction of roads, the payment of civil servants' salaries, etc., and secondly, transfers, e.g., expenditures on social welfare, insurance, poverty relief and subsidies to increase the incomes of certain groups (such as the elderly or the unemployed).

Monetary policy: refers to the general term of various policies and measures adopted by the bank to control and regulate the amount of money or credit in order to achieve its specific economic objectives, including credit policy, interest rate policy and foreign exchange policy.

1. Fiscal policy:

1. Reduce the tax revenue of private enterprises, increase the dividend ratio of central enterprises, and support the development of small and medium-sized enterprises;

2. Increase the first transfer payment expenditure to ensure that ordinary residents have a certain consumption capacity 3. Levy real estate tax on the real estate market and regulate speculation in the real estate market;

2. Monetary policy:

1. Raise the reserve requirement ratio, reduce the M22 flowing into the market through the money multiplier, raise the interest rate on residents' deposit reserves, and ensure that the real savings interest rate of residents is positive;

3. The central bank issues bonds, ** too much currency, to ensure that the currency flowing into the market reaches a slightly stable amount;

4. Intensify the management of markets for agricultural and sideline products to prevent the decline in residents' living standards caused by speculation;

To put it simply, it means expanding domestic demand, increasing employment opportunities, strengthening macroeconomic regulation and control, proactively pursuing financial policies, and maintaining social stability.

I strongly oppose the expansion of domestic demand, and I think the state should use money for scientific and technological research and development, especially energy-saving products, to encourage residents to save money, rather than by lowering interest rates, encouraging people to consume, especially for non-food and non-daily necessities to ensure that companies do not lay off employees or reduce wages, and strengthen material exchanges with other countries to reduce the pressure of reduced exports.