Why does interest rate policy not work in the economy as economic theory suggests?To understand why,you need to look at the economy from a higher level of abstraction.With this approach,only two states of the economy ...Why does interest rate policy not work in the economy as economic theory suggests?To understand why,you need to look at the economy from a higher level of abstraction.With this approach,only two states of the economy can be distinguished.The first is a“normal”state;the second is crisis and recession.The“normal”state is the period after the recession and before the next crisis.During this period,the basic laws of the market economy work.During a crisis,the relationship between the level of interest rates and borrowing by households and businesses is broken.This explains the ineffectiveness of the policy of lowering interest rates.Different states of the economy have their own laws,and you cannot extrapolate tools that are successful under“normal”market conditions linearly to the crisis state of the economy.Why does the interest rate policy during the period of the“normal”state of the economy not adjust its development in order to prevent the onset of the crisis?Firstly,the conditions for the emergence of crisis phenomena are created by the interest rate policy at the very beginning of the business cycle,when central banks set and maintain low interest rates for a relatively long period.Secondly,by the end of the business cycle,the credit burden in economy reaches its maximum,so there is no further possibility of expanding effective demand by decreasing interest rates.Thirdly,interest rate policy is an instrument for rough adjustment of the economy,indiscriminately affecting all participants in economic relations.In an attempt to stimulate the economy,the central bank creates the conditions for increasing its imbalance.Fourth,at the end of the business cycle,the interest rate policy does not actually support the real economy,but only the stock market.Fifth,the Fed’s policy has formed a pro-crisis conditioned reflex among market participants.Thus,central banks should leave the determination of the level of interest rates to the free market.展开更多
this paper based on the food security, the food the macroeconomic regulation and control of the operation mechanism of the general theory, focus on the China＇s grain macroeconomic regulation and control mechanism, th...this paper based on the food security, the food the macroeconomic regulation and control of the operation mechanism of the general theory, focus on the China＇s grain macroeconomic regulation and control mechanism, the concept of grain macroeconomic regulation and control mechanism, the grain circulation macroeconomic regulation and control tool application, grain circulation macroeconomic regulation and control system, the problem of grain circulation system, food price formation mechanism. Through the research set up grain control of the operation mechanism of general theory.展开更多
Overall reflection on the thirty years of reform and opening up from the perspective of Marxist philosophy will demonstrate that every policy involved in this undertaking has undergone a process of the negation of neg...Overall reflection on the thirty years of reform and opening up from the perspective of Marxist philosophy will demonstrate that every policy involved in this undertaking has undergone a process of the negation of negation that includes the phases of affirmation, negation and integration. A new round of integration on a higher level can only be assured by a new round of the negation of negation targeting new contradictions. In making a dialectical evaluation of these three decades, we should not only fully acknowledge the great achievements of this period, but also recognize the problems and underlying risks, such as the contradictions between the productive forces and relations of production, the economic foundation and the superstructure, and ideology and social being, as well as those within the productive forces and the relations of production. With regard to the mechanism of economic operation, we need to place a renewed emphasis on the state＇s role in macroeconomic regulation at the same time as we carry out market-oriented reform. In respect of the ownership structure, we need a renewed emphasis on ＂public ownership as the mainstay＂ while different forms of ownership continue to develop together. And when it comes to distribution relations, ＂letting some people get rich first＂ should be changed to ＂attaching greater importance to social equity.＂展开更多
The paper reviews the fi scal policies adopted by China in the past 70 years,summarizes their characteristics at different stages and looks into the future fiscal policy options for China.The fiscal policy history sin...The paper reviews the fi scal policies adopted by China in the past 70 years,summarizes their characteristics at different stages and looks into the future fiscal policy options for China.The fiscal policy history since the founding of the People’s Republic of China can be divided into four stages.Stage 1:1949-1952,the market-oriented fi scal policy aiming to restore the national economy;Stage 2:1953-1978,the planned fi scal policy;Stage 3:1978-2012,the fi scal policy accommodating the needs of economic transformation;and Stage 4:2012-present,the fiscal policy accommodating the needs of the new era.A look at the above fiscal policy history draws the following conclusions.(1)The goal of the fiscal policy should be set based on a correct understanding of the role of the state;(2).For the fi scal policy to work,it must respect the fi scal law;(3)The fi scal policy must aim higher than the goal of macroeconomic stability and provide guarantees for industrialization and modernization;(4)The government should understand fi scal defi cits while proactively guarding against fi scal risks;(5)The implementation of the fi scal policy must go hand in hand with the fi scal reform;(6)The funding for the fi scal policy must come from diverse sources;(7)The choice of the fi scal policy should fully consider external impacts.The future fi scal policy should revolve around serving the modernization of china’s governance system and capacity,and serving China’s contribution to the building of a community with a shared future for humanity.We should update our knowledge on the fi scal policy to support the decision-making for the choice of fi scal policy.The goal of fi scal policy should be set in coordination with that of other policies.Moreover,from the perspective of the government’s disposable revenue and cash fl ow,the paper probes into the space and challenges for future fi scal policy and sorts the problems of the transmission mechanism that might prevent the fi scal policy from working.展开更多
文摘Why does interest rate policy not work in the economy as economic theory suggests?To understand why,you need to look at the economy from a higher level of abstraction.With this approach,only two states of the economy can be distinguished.The first is a“normal”state;the second is crisis and recession.The“normal”state is the period after the recession and before the next crisis.During this period,the basic laws of the market economy work.During a crisis,the relationship between the level of interest rates and borrowing by households and businesses is broken.This explains the ineffectiveness of the policy of lowering interest rates.Different states of the economy have their own laws,and you cannot extrapolate tools that are successful under“normal”market conditions linearly to the crisis state of the economy.Why does the interest rate policy during the period of the“normal”state of the economy not adjust its development in order to prevent the onset of the crisis?Firstly,the conditions for the emergence of crisis phenomena are created by the interest rate policy at the very beginning of the business cycle,when central banks set and maintain low interest rates for a relatively long period.Secondly,by the end of the business cycle,the credit burden in economy reaches its maximum,so there is no further possibility of expanding effective demand by decreasing interest rates.Thirdly,interest rate policy is an instrument for rough adjustment of the economy,indiscriminately affecting all participants in economic relations.In an attempt to stimulate the economy,the central bank creates the conditions for increasing its imbalance.Fourth,at the end of the business cycle,the interest rate policy does not actually support the real economy,but only the stock market.Fifth,the Fed’s policy has formed a pro-crisis conditioned reflex among market participants.Thus,central banks should leave the determination of the level of interest rates to the free market.
文摘this paper based on the food security, the food the macroeconomic regulation and control of the operation mechanism of the general theory, focus on the China＇s grain macroeconomic regulation and control mechanism, the concept of grain macroeconomic regulation and control mechanism, the grain circulation macroeconomic regulation and control tool application, grain circulation macroeconomic regulation and control system, the problem of grain circulation system, food price formation mechanism. Through the research set up grain control of the operation mechanism of general theory.
文摘Overall reflection on the thirty years of reform and opening up from the perspective of Marxist philosophy will demonstrate that every policy involved in this undertaking has undergone a process of the negation of negation that includes the phases of affirmation, negation and integration. A new round of integration on a higher level can only be assured by a new round of the negation of negation targeting new contradictions. In making a dialectical evaluation of these three decades, we should not only fully acknowledge the great achievements of this period, but also recognize the problems and underlying risks, such as the contradictions between the productive forces and relations of production, the economic foundation and the superstructure, and ideology and social being, as well as those within the productive forces and the relations of production. With regard to the mechanism of economic operation, we need to place a renewed emphasis on the state＇s role in macroeconomic regulation at the same time as we carry out market-oriented reform. In respect of the ownership structure, we need a renewed emphasis on ＂public ownership as the mainstay＂ while different forms of ownership continue to develop together. And when it comes to distribution relations, ＂letting some people get rich first＂ should be changed to ＂attaching greater importance to social equity.＂
基金The Project to Accelerate the Establishment of the Modern Fiscal System,a Class-A Project of the Innovation Program sponsored by the National Academy of Economic Strategy,Chinese Academy of Social Sciences.
文摘The paper reviews the fi scal policies adopted by China in the past 70 years,summarizes their characteristics at different stages and looks into the future fiscal policy options for China.The fiscal policy history since the founding of the People’s Republic of China can be divided into four stages.Stage 1:1949-1952,the market-oriented fi scal policy aiming to restore the national economy;Stage 2:1953-1978,the planned fi scal policy;Stage 3:1978-2012,the fi scal policy accommodating the needs of economic transformation;and Stage 4:2012-present,the fiscal policy accommodating the needs of the new era.A look at the above fiscal policy history draws the following conclusions.(1)The goal of the fiscal policy should be set based on a correct understanding of the role of the state;(2).For the fi scal policy to work,it must respect the fi scal law;(3)The fi scal policy must aim higher than the goal of macroeconomic stability and provide guarantees for industrialization and modernization;(4)The government should understand fi scal defi cits while proactively guarding against fi scal risks;(5)The implementation of the fi scal policy must go hand in hand with the fi scal reform;(6)The funding for the fi scal policy must come from diverse sources;(7)The choice of the fi scal policy should fully consider external impacts.The future fi scal policy should revolve around serving the modernization of china’s governance system and capacity,and serving China’s contribution to the building of a community with a shared future for humanity.We should update our knowledge on the fi scal policy to support the decision-making for the choice of fi scal policy.The goal of fi scal policy should be set in coordination with that of other policies.Moreover,from the perspective of the government’s disposable revenue and cash fl ow,the paper probes into the space and challenges for future fi scal policy and sorts the problems of the transmission mechanism that might prevent the fi scal policy from working.
