China's Fiscal and Monetary Policies in the New Era

This book discusses the new opportunities and challenges facing China’s economy under the background of global economic adjustment and China’s corresponding strategy and policy choice. In macro policy choice, China will pay special attention to the effective combination of fiscal and monetary policies. In the past decade, fiscal and monetary policies have played an important and positive role in China’s stable economy growth, though the effect of policy mix was not always so satisfying. Faced with the new macro-economic pattern as a result of economy globalisation and global economic adjustment and with the requirements of building new macro control system, it is necessary to give a new interpretation to the successful coordination between fiscal and monetary policies, which is significant in both theory and practice. Only by forming an effective pattern of policy mix suitable to China’s special situation, can we ultimately build an effective macro-control system and embrace the challenges of global economic adjustment.

In the past 30 years’ reform, China’s economy has been integrated into the global economy. In the context of globalization, how to lead China’s reform and opening-up to continue to go forward as expected while guaranteeing economy’s sustainable growth, social harmony and political progress, is a new challenge. To balance the role of government and the market and to make it effective in the world of globalization will inevitably a big policy challenge that should be treated seriously by both the government and academic institutions.

This book looks into China’s economy growth and policy mix in the context of global economic adjustment from a historical perspective where the long-term evolution of macro-economy is considered. It provides new theoretical explanations to important issues such as global economic adjustment and China’s policy choices; institutional reform, the degree of openness and factors behind China’s economic growth; global economic adjustment and mix pattern of fiscal and monetary policies, etc.