Can Fiscal Policy Restart High Growth?

We are finance Can policy promote? Economics The main concerns for growth are: first, finance. policy Can we break through implement The two is whether fiscal policy is effective for growth.

Debt risk upgrade Liquidity control and real estate regulation weakens the government's financing ability to a certain extent. Even if the government has the goal of promoting the development of the industry by using fiscal policy, it may also encounter difficulties in its implementation.

On the whole, there is no crowding out effect in China's fiscal policy, and it is also effective in promoting economic growth. But at present, a special case is that the current monetary environment has abandoned the era of highly mobile liquidity. Debt financing, which is related to fiscal expansion, will exert enormous pressure on the capital market. If the demand for funds increases the real interest rate, the logical chain of "crowding out effect" will be re connected. This will fundamentally affect the effectiveness of fiscal policy.

Considering the two aspects of feasibility and effectiveness, it is not necessary for the government to carry out fiscal counter cyclical operation with great risks and costs. As monetary policy is more constrained by the severe inflation situation, the moderation of fiscal policy implementation will lead to a temporary "vacuum period" in macroeconomic regulation and control. Economic growth and stability will depend more on the endogenous driving force of economic growth, and the rate of decline may exceed the expectations of the former market.