The Empirical Analysis of the Effect of Fiscal and Monetary Policy on Consumption in China

摘要

Fiscal policy and monetary policy plays a key role in consumption, but the results are different due to different times, locals and policies. Based on VAR model, the paper discusses the effect mechanism of fiscal policy and monetary policy on consumption and its results through analyzing economic data selected in China from 1998 to 2009. The corresponding conclusions and suggestions will have important real significance to explore the consumption policy suitable to China.