China’s Institutional Strength,Monetary Policy Coordination and Fiscal Crowding-in Effect

As two main tools of macroeconomic policies,coordination and conflict between fiscal and monetary policies have been paid considerable attention by researchers.Under a structural vector autoregressive model that incorporates fiscal and monetary policies,this paper analyzes the monetary policy response to fiscal shocks.Our study finds that during the occurrence of a fiscal shock,the growth rate of broad money supply M2 substantially increased,indicating the adoption of an expansionary monetary policy by the monetary authority to fiscal policy expansion.Based on this empirical finding,this paper improves the dynamic stochastic general equilibrium model to investigate the fiscal policy effects under China’s monetary policy coordination.Our analysis shows that monetary policy coordination will significantly boost the economic stimulus effect of fiscal policy,generating a fiscal crowding-in effect.From the perspective of China’s institutional strength,this conclusion offers a theoretical explanation on the empirical fact of the fiscal crowdingin effect uncovered in the research literature,and offers a policy reference for making the proactive fiscal policy more efficient and effective.This paper suggests that China’s policymakers give full play to the country’s institutional strength by coordinating fiscal and monetary policies for high-quality economic development.

Study of International Coordination of Chinese Monetary Policy under Open Economy

Preliminary study is made to the international coordination of national monetary policy under economic globalization and informationalization. This paper uses Game Theory to analyze the operation effect of Chinese monetary policy. It suggests that the maximum effect of Chinese monetary policy can only be achieved by cooperation and coordination with international society.

Non-Symmetry of China’s and US Monetary Policy Spillovers:Theoretical Modelling and Empirical Analysis

This study develops a structural vector autoregression(SVAR)framework to empirically examine the reciprocal transmission channels of monetary policies between China and the United States.The primary objective is to discern potential disparities in the spillover effects of monetary policies and ascertain any contrasting mechanisms underlying these effects across the two countries.Based on our research,it appears that there exists a certain level of non-symmetry in the spillover effects of monetary policy between the two countries.Moreover,this paper provides adequate analysis of disparities in the trade framework,capital control,and financial market operations of both countries in constructing a dynamic stochastic general equilibrium(DSGE)model that incorporates financial frictions for the examination of the theoretical rationale.The empirical findings indicate that China’s monetary policy creates a spillover effect primarily through trade.In China,following an increase in its interest rates,the domestic economic activity will experience a contraction,leading to a decline in both investment and output.Consequently,this will result in a decrease in China’s imports of investment goods from the United States,impacting the output of the US economy.In contrast,the US monetary policy exerts a spillover effect primarily through finance.An increase in interest rates by the United States is associated with a notable outflow of capital from China.This leads to a rise in the financing costs for Chinese firms,consequently diminishing their overall net worth.In light of the financial accelerator effect,corporate external financing risk premium will continue to increase,exacerbating the downward trajectory of China’s output.

SIKA: a New Method to Build Electronic Meeting Systems

The architecture of SIKA is introduced and it is propose as a new method to build electronic meeting systems (EMSs). There are at least two desirable properties of building EMSs using SIKA. Firstly, the privacy and integrity of participants are guaranteed. Secondly, the coordination policy is easy to maintain.

International policy coordination and RMB internationalisation:theory and historical experience

Based on theoretical logics derived from the literature and the historical experience,we take a deep look at the relationship between international policy coordination and RMB internationalisation.International policy coordination and RMB internationalisation are complements.On the one hand,an effective policy coordination mechanism needs the support of an efficient international monetary system,thus calling for diversification of international vehicle currencies.RMB,supported by solid economic fundamentals,can be a good candidate as one of the international vehicle currencies in the diversified international monetary system.On the other hand,due to the existence of policy spill-over effects,an appropriate coordination mechanism improves policy effectiveness in China,which promotes RMB internationalisation by enhancing China’s economic and financial strength.

2021年夏季中国公共管理研究佳作评介

This article introduces four noteworthy papers published in China's top journals in Summer 2021,all of which are phenomenon-driven and design-based case studies.The first paper employs a process tracing approach to analyze the failure of policy coordination based on an empirical case regarding the revision of the price catalog for basic medical services in Province F.The second paper develops a triple mechanism framework to account for the distortions in China's grassroots policies.With a most similar case design,the third paper proposes a typology framework for campaign-style environmental governance and compares the mobilization models for environmental governance.Based on a grounded theory approach,the final paper analyzes data from thirty-eight public crises cases to reveal the mechanism of political mobilization for emergency management.These studies explain clear theoretical puzzles brought about by practical problems,and they provide a sense of the research designs in the case studies.They show three types of case studies:(1)two single case studies,one with a process tracing approach and the other illustrating a developed theoretical framework,(2)a comparative case study,and(3)a multi-case study applying a grounded theory strategy.These studies provide enlightenment and lessons for future Chinese case studies.

Coordination of Income Distribution System and Promotion of Common Prosperity Path

This paper aims at summarizing the evolutionary law of income distribution system and providing a reference for the coordination arrangement of primary distribution,redistribution and third distribution policies.Based on policies,this paper refi nes the evolutionary law of income distribution and estimates the proportional relationship among primary distribution,redistribution and third distribution by using the national income data.Its new insight lies in abstracting the evolutionary logic of the income distribution system shifting from emphasizing effi ciency to prioritizing equity and estimating the proportional relationship among the primary distribution,redistribution and third distribution.The study found that China’s income distribution system follows the evolutionary logic of shifting from efficiency to equity.In addition,China has overcome egalitarianism,given priority to effi ciency with due consideration to equity,and placed more emphasis on equity while balancing the relationship between equity and effi ciency,promoting the four stages of common prosperity.Primary distribution,the dominant mechanism for income distribution,is required to provide an equitable distribution order.Redistribution,an important means of income distribution,needs to increase expenditures on people’s living and social security.Third distribution,a useful supplement to income distribution,needs to design a policy system for incentive compatibility.This paper provides policy references for promoting common prosperity and conducting fundamental institutional arrangements for primary distribution,redistribution and third distribution.

Is Asian Currency Unit Attractive to East Asian Economies?

Pegging the RMB exchange rate to the Asian short term, been proved a better solution than currency unit （A CU） has not, at least in the pegging to the US dollar or pegging to a G- 3 （US$, Japaneseyen and euro） currency basket. Although the Asian currency unit can help Asian economies to keep the relative price of regional currencies stable, the cost of joining a formal regional monetary cooperation is the relinquishment of the autonomy of their domestic policies. Asian monetary cooperation needs to provide more potential benefits if it is to attract Asian economies. We argue that Asian monetary cooperation should be designed to solve the problem of regional trade imbalance, and regional exchange rate policy coordination should be adopted as the first step towards exchange rate cooperation.

Macroeconomic Rebalancing in China and the G20

The principal challenge facing the world economy is the risk of recurrentfinancial crises. Global macroeconomic imbalances create the conditions for boom-and-bust cycles that are extremely costly for the countries that experience them, and that can affect other nations and the entire world economy as well. The G20 recognizes the importance of these trends, and has committed itself to cooperative measures to reduce imbalances. However, progress has been limited and halting. There are major political obstacles to global macroeconomic policy cooperation, both within countries and among countries. China＇s attempts to rebalance its economy are crucial to broader international financial stability. Its G2O presidency gives China the opportunity to demonstrate that it is willing and able to advance its cooperation with economic partners, and to help lead the rest of the world in this direction.

Study on Medium-and Long-Term Fiscal Policies to Cope with Climate Change under the"Dual Carbon"Goals

Carbon peaking and carbon neutrality constitute an extensive,profound and systemic economic and social change.It is worthwhile to explore how fiscal policy,as a key institutional arrangement in the public policy system to cope with climate change,can play a fundamental and pillar role.Based on literatures,theories and empirical materials,this paper systematically explores the relationship between climate change and public finance.The fiscal impact of climate change will eventually be reflected in fiscal behavior,fiscal costs and fiscal relations,and the fiscal system has the adaptability of an"automatic stabilizer"and the proactiveness to enable the Discretionary Approaches function when facing climate change impacts.This implies such a governance logic of fiscal policy that is systematic,forward-looking and flexible in addressing climate change.In the future,it is necessary to further incorporate climate change or related environmental factors into the fiscal policy framework,target the two key aspects of mitigation and adaptation,and carry out a holistic,systematic and forward-looking reform of the existing fiscal expenditure policy,fiscal revenue policy,fiscal investment and financing policy,government budget system,government procurement policy and ecological compensation policy.While highlighting the"governance"function of fiscal policy in addressing climate change,Chinese government needs to strengthen the coordination and collaboration between fiscal policy tools and other public policies,and magnify the governance effectiveness of fiscal policy in the process of addressing climate change.This paper helps understand the positioning,role and influence of fiscal policy in the process of addressing climate change,provides a basis for better playing the fundamental and underpinning role of the modern fiscal system in the governance of ecological civilization,and presents an analytical framework for building a theoretical system of ecological fiscal governance.