The Empirical Analysis Of The Effectiveness Of Expansionary Fiscal Policy In China

In face of Asian financial crisis breaking out, the global economic growth speed slackening and the effectual demand of our domestic economy insufficient, our government implemented expansionary fiscal policies in 1998. These expansionary fiscal policies mainly consist in enlarging the treasury bonds and expanding the consumption demands. Up to now, Expansionary fiscal policies have promoted our domestic economy and have expanded the investment demands. But actually we can find the there are many problems which effect the effectiveness of expansionary fiscal policy. So it is very important to study and research the expansionary fiscal policy and this will help us to consider the macroeconomic policy in our country.There are many researchers have studied the expansionary fiscal policy influencing macro economics and also make the suggestion.So this article elaborates on the background of the Expansionary fiscal policy in 1998, summarizes major measures taken in implementing the policy, and uses partial equilibrium method to analyze. The most important part is using the data collected to build up models and to make empirical analysis. This will make us to study the expansionary fiscal policy comprehensively.