A Comparative Analysis Of The Positive Fiscal Policy Effects Of Two Financial Crises

The periodicity characteristics exists in the economic operation, cycle fluctuation of the economic operation can easily cause a recession, the world tends to take an active fiscal policy in order to mobilize against economic fluctuations vitality of the market, stimulate investment and consumption to promote economic growth.The economic development about China during the past several decades,there are two cyclical fluctuations in the economy and the implementation of counter-cyclical fiscal measures recorded. The first round of implementation time is 1998, the main reason is the Asian financial crisis had occurred. The second round conducted in 2008, in response to the impact of the US subprime crisis,Chinese government has takena lot of funding to promote market activity incentivestowards the domestic market, in result, the implementation of policies to achieve significant results.After the global financial crisis, thanks toour government to start the second round of the proactive fiscal policy and other measures in the same period, China’s economic development situation rapidly stabilized and showed a slow upward trend. But at the same time, the implementation of the policy has brought some other problems like inflation and crowding out obviously. Because fiscal policy itself has a time lag, so during implementation also cause debt risk. Overall,beforethe implementation of fiscal policy, Chinese government need to consider not only the stimulus to economic growth, but also to other risks that may arise to prevention.This article briefly describes the two active fiscal policy played an economic effect, and analysis the policies which were implemented about our government. Through the multi-policy perspective the main content policies and background contrast, the analysis and comparison of two respectively in terms of policy issues and the effectiveness of measures generated.And then,entering the core of the discussion herein about the economic effects related evaluation and analysis. On the one hand to evaluate the effects of growth and analysis, including analysis of the proactive fiscal policy to play a stimulating economic effect, to increase government investment and tax effects for improving levels of economic growth; on the other hand, crowding out the analysis, the main way is by building LS-LM model to analyze government spending crowding out, and the growth rate of government expenditure and purchase of private investment growth empirical analysis.Finally, the article summarizedthe existing problems about the proactive fiscal policy of the Chinese government has implemented,and presented the personal views on the future of factors should be considered to implement a proactive fiscal policy.