Research And Analysis On Policy Transmission Mechanism From The Perspective Of Local Finance

Local economic development is closely related to its economic policies.From the local perspective,this thesis makes analysis and comparison of the banking and financial data from 1991 to 2015 by means of example verification,and also demonstrates that monetary and fiscal policies are of obviously regional characteristics in the process of implementation,as the local government can initiatively influence their promotion.Grounded on financial credit rationing theory,the thesis expounds and deduces the local transmission of monetary and fiscal policies utilizing CC-LM model.It also summarizes some characters of the two policies during the transmission from the local perspective.Based on the study conclusion,as for how the local government dominates "the visible hand"-currency and "the invisible hand "-finance to further promote the aggregation and development of financial resources,the thesis suggests that the authorities should pay close attention to boosting impact of economic policies on local development and take measures to coordinate the local implementation of monetary policy,e.g.,actively improving the regional financial environment difference,establishing and improving data statistics mechanism,providing sound service for local transformation and upgrading.Furthermore,the local goverment can also adopt administrative measures to efficiently accelerate the regional economic development,e.g.,carrying out differentiated fiscal policy,improving administrative efficiency of the government,giving full play to treasury investment and loan.