Study of the Active Fiscal Policy under the New Normal

摘要

In the process of formulating fiscal policy, China has adopted active fiscal policy twice. In 1998, the government adopted active fiscal policy for the first time to resist the negative impact of the Asian financial crisis. In the second half of 2008, the central government announced that its fiscal policy in order to fend off the negative impact of the subprime mortgage crisis in the United States had changed from prudent to positive. However, China's active fiscal policy has focused on infrastructure development over the years. This approach to development is very effective in stimulating economic growth in the short term, but it will have a series of negative consequences for long-term development. Based on the connotation, effectiveness, limiting factors, suggestions and theoretical research results of active fiscal policy, this paper combs and summarizes the current active fiscal policy.