The Crisis Impact Of Our Economic Fluctuate And Policy Choice

In early 2007 American financial crisis erupted and has begun to infect American economic entity in 2008, and further spread to all over the world. In open economy, our economy was not spared. Affected by this, China's GDP growth has slide down sharply from the first quarter 10.6% to the fourth quarter 6.8% in 2008. As a barometer of the economy, stock market has also appeared unilateral fall, Shanghai Composite index has been dropped from 6124 points to 1664 points. The economic operation index display, China's economy has entered the downlink channels, people has begun to concern about our economic prospects and even panic. In view of this, to cope with the crisis and avoid economic decline, the Chinese government has issued a series of determination of economic stimulus package such as the proactive fiscal policy and moderate looser monetary policy. Under a series of powerful economic stimulus, from the early 2009, China's economic decline has begun to slow down, and in the first quarter of 2009, our economy has successfully achieved v-shaped reversal and entered post-crisis period. However, China's economic growth is still full of uncertainty, the financial crisis is not really over. With the development of China's economy, our economy is facing inflation expectations risk again. Therefore, it is difficult for Chinese government to how to take measures.Therefore, this paper firstly analyzed the deep reason of American financial crisis, then further analyzed the crisis impact of our country's economic fluctuation and the conduction mechanism. Then, further analyses the fiscal and monetary policy and its effect. Finally, with the China's current economic condition, analyses the post-crisis fiscal and monetary policy choice. We make a conclusion that our economic fluctuation mainly comes from internal economic cycle and the external demand decline dual factors. Therefore, our government took both positive fiscal policy and moderate looser monetary policy and achieved the desired effect. However, with the change of global economy and China's economic situation, the world has entered the post-crisis times, which makes us have to re-examine the fiscal and monetary policy. Based on the analysis of post-crisis China's economic characteristics, we know that it is necessary for china to maintain positive fiscal policy. But monetary policy will carry out flexible adjustment according to economic atmosphere and service positive financial policy.