Research On Fiscal Risks And Ways To Keep Away Financial Risks In China

Public financial risks are very significant risks confronted with any government, financial risks are accompanied by the emergence of country . Different from natural risks, financial risks and corporate risks,public financial risks have concealed and cumulative characteristics. Financial risks are the bottom line of the defense against public and private risks. If financial risks are not controlled timely,the consequence will be very serious. It will even lead to the outbreak of financial crisis as the accumulation and expansion of the financial risks,which can cause economic recession and trigger social unrest. Considering economic development and social stability, today all countries of the world take it an important mission to guard against financial risk,.particularly in response to financial crisis,states have begun to implement proactive fiscal policy,we should placed it an important position.This thesis consists of four parts. The first part analyzes the fundamental principles,the specific performance, causes and characteristics of public financial risks in China. The second part focuses on how United States and other countries defense and cope with public financial risks ,which provides us some experiences and lessons; The third part discusses what a political system is needed to guard against public financial risks; The fourth part gives some suggestions to guard against public financial risks in China after analyzing the specific circumstances China faces in dealing with public financial risks.In view of the local public finance, it suggests to issue local construction bonds and gives some suggestions to the design of such bonds.The objective of this thesis is to remind the goveraers of the awarenes of public financial risks and they should take precautions before it is too late.Especially the global financial crisis is still raging today,wo should be ware of public financial risks all the time and take strtegic measures so as to provide a favorable circumstance for the economic and political development of our country.