Since the founding of the People’s Republic of China, China has made remarkable achievements and already has had objective conditions for moving towards high-quality development. Under different development stages and policy objectives, there are differences in the regulation effects of fi scal policies and monetary policies. In order to achieve economic growth and price stability, China’s fi scal and monetary
policies have undergone various switches. This paper first reviews collocation models of China’s fiscal and monetary policies in the past 70 years, and summarizes their features, including fl exibility, dislcetionary regulation, demand management, and tool diversity. Then, it points out the deficiencies in regulation through fiscal and monetary policies, such as conflict of multiple goals, delayed or mismatched
effects, marginal decrease in economic effects, and offset of policy effects. At last, the paper puts forth the possible innovation in combination paradigm, expectation management, supply-demand synergy, and instrumental coordination, and points out the direction of coordination paradigms.
Keywords: fiscal policy, monetary policy, coordination paradigm
China Finance and Economic Review
Volume 8 Number 4 Winter 2019.P66