High resident saving and high foreign exchange reserve are the inevitable products in China during the period from planned economy to market economy, and there is high correlation between them. On the one hand, this k...High resident saving and high foreign exchange reserve are the inevitable products in China during the period from planned economy to market economy, and there is high correlation between them. On the one hand, this kind of economic phenomenon can＇t persist in a long time; on the other hand, to implement relevant fiscal and monetary policy, foreign trade policy, and foreign exchange management policy to change them in view of their negative effects to present economy is one of the present economic tasks.展开更多
This paper quantitatively analyzes the impact of money stock on optimal monetary and fiscal policy in a stochastic production economy with sticky prices. The numerical results indicate that a sufficient large quantity...This paper quantitatively analyzes the impact of money stock on optimal monetary and fiscal policy in a stochastic production economy with sticky prices. The numerical results indicate that a sufficient large quantity of money makes a noticeable difference in many aspects of optimal monetary and fiscal policy. They suggest that the volatile inflation in China may not be as bad as the existing theory would have implied if its large amount of money is taken into consideration.展开更多
文摘High resident saving and high foreign exchange reserve are the inevitable products in China during the period from planned economy to market economy, and there is high correlation between them. On the one hand, this kind of economic phenomenon can＇t persist in a long time; on the other hand, to implement relevant fiscal and monetary policy, foreign trade policy, and foreign exchange management policy to change them in view of their negative effects to present economy is one of the present economic tasks.
文摘This paper quantitatively analyzes the impact of money stock on optimal monetary and fiscal policy in a stochastic production economy with sticky prices. The numerical results indicate that a sufficient large quantity of money makes a noticeable difference in many aspects of optimal monetary and fiscal policy. They suggest that the volatile inflation in China may not be as bad as the existing theory would have implied if its large amount of money is taken into consideration.
