A Study on Positive Flscal Pollcy Effect in China during Post-crisis Perlod
|School||Northeast Normal University|
|Keywords||Post-crisis Active fiscal policy Economic growth Expandingdomestic demand|
Active fiscal policy is a temporary, phased expansion policy which is executedwhen there is insufficient demand, weak growth in economy, investment, exports andother special circumstances in a country. Active fiscal policy, if timely and appropriateimplemented, will expand domestic demand and stimulate the economic growthrapidly, if implemented improperly, it will create a lot of social problems.During the international financial crisis, China is seeing a situation of weakeconomic growth. In order to maintain economic growth, the state implemented aproactive fiscal policy. By investing in infrastructure, adjusting the tax and othermeasures to protect and improve people’s livelihood, our economy recovers firstly inthe world. However, due to a long-standing structural imbalances in the economycoupled with unjust implementation process, there is a lack in domestic demand inChina ,a dominant investment, inflation and other issues, and these problems havebeen extended to the post-crisis period. Through specific elaborate on theGovernment’s policy during the crisis and the effect of fiscal policy during thepost-crisis, this paper analyzes the problems in the process of policy implementationand put forward policy recommendations.