Study On The Economic Cycles And Public Financial Policies

With the development of economy, international and domestic economic situation changes in complex, a national and regional fiscal policy adjustment in the economy has become more important. From the macro level, researching on relationship of fiscal policy and business cycle can help finding the use of fiscal instruments in Chinese macro-control. It can also help finding effective fiscal policy for economic growth.This structure is divided into five parts. The first part introduces the background and significance of topics, including the research from domestic and foreign scholars. The second part describes Theory of Economic Cycle and Theory of Financial Regulation. The third part is about a typical economic cycle in the foreign countries and financial policies adopted by. The fourth part is about business cycle since reform and opening up in China, and fiscal policies taken at different times. It also gives comments to different policies. The fifth part is the experience of China's fiscal policy summary, and it put forward recommendations to the lack of policies. This paper is from the qualitative point of view, and it put comments to different policies at different times through the three decades since China's reform and opening up, and it also lessons learned from using of the policies. In the case of fast economic growth, government expenditure, reducing the scale of fixed asset investment can effectively control the total amount of social investment, ease budget deficit expanded to suppress overheated economy. Tax adjustment on overheated sectors can not only cover the deficit, but also weaken the growth momentum of economic overheating. In the case of slow economic growth, issuance of bonds can quickly increase aggregate demand directly. Through the adjustment of export tax rebate rate, it can improve the export performance and maintain a steady growth in total imports and exports to promote economic development.