China's Fiscal and Monetary Policies in the New Era

Editors: Huang Da et al. Translated by Hu Jinyan, Chen Xiaoli, Li Ying

ISBN: 978-1-84464-496-4

Ebook ISBN: 978-1-84464-497-1

Hardback-250 Pages

November 2018


£80 €100 $130


This book aims to discuss 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, we 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-economy pattern as a result of economy globalization 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, evidently, 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.


Chapter 1 Introduction

1.1 Research Background: Basic Consensus

1.2 Existing Literature: A Brief Review

1.3 Analytical Logic and Research Objective

1.4 Related Concepts and Definitions

1.5 Problems and Difficulties

1.6 Analytical Structure and Basic Conclusions

Chapter 2 Economic Globalization and Trade Off

2.1 Modern Picture of globalization Economy Connection: The World after 16th Century

2.2 Benefits and Costs of Globalization: Question from stiglitz

2.3 Economic Globalization: Where are We Going

Chapter 3 Adjustment of Global Economy and China’s Choice

3.1 China in Global Economic Adjustment: A Remote Retrospect

3.2 Trade Choice and Institution Conflict in Global Economic Adjustment

3.3 Government’s Role and Policy Choice in Global Economic Adjustment

Chapter 4 Institution Change, Degree of Openness and Economic Growth

4.1 Theory of Institution-economy Growth

4.2 Degree of Openness, Institution Change and Economic Growth: Econometric Analysis

4.3 Conclusion

Chapter 5 Economic Globalization and China’s Economic Growth: Relationship and Efficiency

5.1 Introduction

5.2 Economic Globalization and Economic Growth: Evolution of Theoretical Logic and Analytical Paradigm

5.3 Economic Globalization and Economic Growth: China’s as an Example

5.4 Conclusion and Policy Implications

Chapter 6 Global Economic Adjustment, Capital Flow and China’s Economic Growth

6.1 Introduction

6.2 Openness, Capital Flows and Economic Growth: Theoretical Logic and Empirical Test

6.3 Capital Flow and China’s Economic Growth: Empirical Analysis

6.4 Conclusion and Policy Implications

Chapter 7 Global Economic Growth, Economic Structure and Capital Market

7.1 Research Background and Problems

7.2 Structure Change of Global Economy and Capital Market: A Historical Perspective

7.3 Economic Growth, Structure Change and Capital Market: A Theoretical Analysis

7.4 Economic Growth, Structure Change and Capital Market: China’s Practice

Chapter 8 China Economic Growth and Capital Market in the Background of Global Economic Adjustment: Further Discussion

8.1 Introduction and Data

8.2 The Connection between Capital Market and Economic Growth: Theory and Example

8.3 Capital Market and China’s Economic Growth: Empirical Analysis

8.4 Why Can’t China’s Capital Market Have Positive Effect on Economic Structure Change and Economic Growth

8.5 Brief Conclusion

Chapter 9 Global Economic Adjustment, Economic Growth and Fiscal Policy Choice: General Discussion

9.1 Introduction: Adjustment Theory and Analytical Perspectives

9.2 Economic Adjustment Stages and Features of China’s Economic Growth

9.3 Fiscal Policy Choice: Promoting a Balanced Economic Growth

Chapter 10 Global Economic Adjustment, Balanced Economic Growth and Fiscal Policy Choice

10.1 Introduction

10.2 Economic Growth Pattern: to Be More Balanced

10.3 Fiscal Policies Aiming to Improve Income Distribution: Further Discussion

10.4 Fiscal Policies Coordinating with Financial Market Reform

10.5 Fiscal Policies Changing the Innovation Direction of Enterprises

10.6 Complicatedness of Fiscal Policies in Adjustment Period

Chapter 11 Global Economic Adjustment, Monetary Policy Evolution and Related Trade-off

11.1 Monetary Policy Evolution: A Picture at Early Stage

11.2 Forming Monetary Policy Frame: Process and Logic

11.3 Change of Financial Structure and Adjustment of Monetary Policy Goal

11.4 Change of Monetary Policy Environment and Policy Efficiency

11.5 International Conflict and External Balance: A Trade-off of Monetary Policy in China

Chapter12 Financial Stability and New Objective of Monetary Policy in Global Economic Adjustment

12.1 Introduction: Emergence of Financial Stability Goal in Globalization Era

12.2 External Source of Financial Instability: Imbalance of Global Economy

12.3 Internal Source of Financial Instability: Over-Fluctuation of Asset Price

12.4 Economy Imbalance and Financial Instability: Japan’s Case

12.5 Conclusion: Required Change of Monetary Policy’s Ultimate Goal

Chapter 13 Global Economic Adjustment, National Choice and Mix of Fiscal and Monetary Policies

13.1 Imbalance of Global Economy: Features, Formations and Policy Choice

13.2 Basic Choice for a Nation to Adjust Economy in the Background of Global Economic Adjustment

13.3 Macro Control System in the Background of Global Economic Adjustment

13.4 Fiscal and Monetary Policy Mix as a Way to Resolve Internal-external Imbalance

Chapter 14 Seeking Effective Fiscal and Monetary Policy in the Background of Global Economic Adjustment

14.1 Introduction

14.2 China’s Fiscal and Monetary Policy Mix in Macro Control; A History Trail

14.3 What Is the Problem of China’s Fiscal and Monetary Policy Mix

14.4 Rules of Economy Policy Design and Patterns of Fiscal and Monetary Policy Mix

14.5 Choice and Use of Fiscal and Monetary Instruments

14.6 Reformulate the Micro Basis and Transmission Mechanism of Fiscal and Monetary Policies

14.7 International Cooperation of Fiscal and Monetary Policies

Chapter 15 Conclusion Main References

About Author:

Professor Huang Da, was born in February 1925. Professor Huang currently Honored President of the Board of Trustees of Renmin University of China and Doctoral Supervisor of the School of Finance, Renmin University of China. He is also Honored President of the National Finance Association of China. Professor Huang was a member of the National People’s Congress, and a member of the financial committee of the National People's Congress. He has published many academic papers in top journals and writings in finance and Chinese economy. Particularly, his famous textbook Finance has published five times up to now.