The Comparative Research On Economic Stimulus Policy Instruments Adopted By America And China

By the bankruptcy of New Century Financial Corporation and Bear Stearns Corporation in 2007, American sub-prime mortgage crisis appeared, and turned into global financial crisis sweeping other countries all over the world in September 2008. After the financial crisis burst, it made tremendous influence on American financial system, and induced economic recession, decline of GDP increasing speed, shrivel of private investment, and exaltation of unemployment rate. By contrast, the financial system of China didn't exist the shortage of liquidity and bankruptcy of financial institutions, by the reason of low level of opening degree in our financial system. However, financial crisis deeply attacked our real economy, and import and export volume slid down by several months, a large number of small and medium enterprises went bankrupt, foreign investment reduced, foreign enterprises cut down the staff widely, and faced severe employment situation.All governments adopted economic stimulus plan to inhibit the further deterioration of financial crisis, and relived the negative impact on the economy. At the same time, the governments took unconventional intervention methods as assistances, lent a helping hand to financial institution and financial market, and stimulated domestic demand, in order to avoid the global deep recession. The economic stimulus plan of our country focuses on real economy, but Americans'emphasizes on rescuing problem financial institutions. Because it makes differences among national conditions, influence degree of crisis, and policy instruments between two countries, the transduction pathway and policy effect are also different from each other. But they are confronted with the same problem. That is the negative effects from economic stimulus plan can threaten the stability of economic recovery. Specially the contradictions, such as unreasonable economic structure and surplus production, are sharper after the explosion of financial crisis, which will constrain the sustainable development. Therefore, we should seize the opportunity, by means of exit of economic stimulus policy, translate the focus of macroeconomic regulation into the adjustment of economic structure, promote the transformation of economic development mode, in order to achieve harmonious development, innovative development and green development and inclusive growth.