A Study On The Coordination Of Macroeconomic Policy Between China And USA

The coordination of international macroeconomic policy refers those activities existed between countries that coordinate their own macroeconomic policy to eliminate the negative impact which caused by the policy for each other. To strengthen the coordination of macroeconomic policy with USA will promote to balance the domestic economic structure and accelerate the steady development of economic for China. This dissertation launched the research with the center of economic interaction and policy coordination between China and USA based on the establishment of the Theory Model, Measurement Model and Game Model.The coordination of macroeconomic policy is a part of open macroeconomics system based on the interdependence theory between two countries. The dissertation has designed the Theory Model of macroeconomic policy coordination between two countries with the researching of existed coordination theories of international economic policy, and further framed the Measure Model of macroeconomic interaction between China and USA, including 3 modules and 19 equations, to analysis the macroeconomic interaction and the simulated impaction for each other between China and USA. According to the results of simulated impact that Fiscal Policy and the Monetary Policy reacted on the both GDP and CPI for each other between China and USA, this dissertation has analyzed static game and dynamic expansion game within those two counties, and advised how to strengthen the coordination of macroeconomic policy for two countries.The first main point of this dissertation is that the coordination of macroeconomic policy for China and USA is built on a complex mechanism of economic interaction which consisted of the imports and exports, capital flows, policy transmission and so on. Second, the mutual impact for China and USA because of their own Fiscal Policy and Monetary Policy has distinct characteristics: USA is still in a strong position with its policy transmission, Fiscal Policy's impaction on GDP and Monetary Policy's impaction on CPI is significant for both two countries. The benefits of combined and coordinated policy of two countries are better than one country's policy or separated policy. Third, the substance of coordination of Fiscal Policy and Monetary Policy for China and USA, is a dynamic process of Policy Game, selection of the coordination method and adequate opportunity is very important.This dissertation researched with innovation in three areas. First of all, expanded the Theory Model of international economic interaction and make it became the Economic Interaction Model for two countries and between these two countries and others. And the Model has taken full account of the independence of national Fiscal Policy in an open economy. Second, this dissertation has tried to establish an Interaction Model between two countries with the measure methods, and measured impaction with the quantitative analysis when policy has changed. The third is tried to take the results of simulated impact of two countries policy account into the Model as distribution of Game's income, analyze and descript the Policy Game with the quantitative and qualitative analysis. These three innovations made those three Models linked as a whole in logical.