Fiscal Policy To Expand Demand

Scant demand is the main Problem with that today' s world economy is beset, it has also become the principal contradiction which occurred in our nation ' s economic life. Solving the problem of scant demand has become the main task of our country' s macroeconomic policy. Beginning from the Roosevelt New Policy, the international practice showed that fiscal policy has been the most important mean to surmount scant demand and economic recession. Therefore, how to take advantage of fiscal policy to settle the scant demand problem has become the important research topic that the theory circles and the practical departments are badly in need of studying and researching.This thesis is divided into 6 chapters. Chapter 1 is the Introduction. Firstly, the writer briefly introduced the background of the topic and the motives of the research. Secondly, the writer put emphasis on explaining the fiscal policy of expansion demand, considering that without using of the wording of Western Expansive Fiscal Policy was for the purpose of more directly and comprehensively reflecting the policy' s aim and means; Without using the wording of Positive Fiscal Policy was for the reason that Positive Fiscal Policy may be divided into three scopes of narrow , middle and wide ones. The writer utilized the wording Middle Positive Fiscal Policy ?Positive Fiscal Policy is not a standard academic word, it' s presented mainly in accordance with the weak-ing conditions of fiscal Policy' s function Finally, the writer summarized the key 16 viewpoints and introduced the structure of this thesis.In Chapter 2 the writer analysed the theory of Expansion Demand Fiscal Policy, stressing on the general function of fiscal policy when volitional total demands were less than volitional total supply; and pointed out the five direc-tions of Expansion Demand Fiscal Policy in play and the mechanism of the function. At the mean time, the writer briefly introduced and analysed the various policy suggestions, such as keynes Economics, Neo - Classical Synthesis , Neocambridge School, Monetary School, Supply - Side Economics, School of Rational Expectation, School of Public Choice, School of Neo ?keynes . From the above schools the writer got 3 inspirations: 1. We should comprehensively bring the means of fiscal policy into full play; 2. We should have the eyes on the microeffect of fiscal policy; 3. We should pay attention to the system effect of carrying out fiscal policy.In Chapter 3 and 4 mainly the writer probed into the international and domestic practice of Expansion Demand Fiscal Policy. From the analysis of the international practice, the writer summarized some learned experiences, the most important one was the Japanes Lesson. We should make a correct assessment of the situation, precisly handling the entrance, fading out and seceding time of the expansive fiscal policy. The writer obtained a conclusion from the analysis of our country' s practice that, our nation' s currency policy has little influence on expanding demands according to IS - LM model, however, fiscal policy owns a larger space to play. Meanwhile, the writer thought that our nation ' s positive fiscal policy has 5 main peculiarities:1. The emphasis of the policy focused on the adding of issuing national debts, and enlarging the government expenditure; 2. According to the retirements of public finance and market economy, the policy made the fiscal expenditure into fine structure, raising the investment on infrastructure and strengthening the transfer payment ability; 3. Subject not to reduce the tax revenue level, the policy carried on structural ajustment to "Increasing and Decreasing" tax policy; 4. The policy paid attention to lighten the burden on enterprises and residents through taxation and charges reform; 5. From the very beginning, the policy considered of avoiding the phenomenon of "Squeezing Out Effect" by expanding government expenditure.In Chapter 5 the writer specially commented on the effect of our country' s Positive Fiscal Policy. The writer...