What are the main types of macroeconomic policies that macroeconomic regulators can use?

Fiscal policy refers to the guiding principle of fiscal work stipulated by the state according to the political, economic and social development tasks in a certain period, and regulates the total demand through fiscal expenditure and tax policy. Increasing government expenditure can stimulate aggregate demand, thus increasing national income, and vice versa. Taxation is the shrinking force of national income. Therefore, increasing government taxes can curb aggregate demand, thus reducing national income. On the contrary, it will stimulate aggregate demand and increase national income.

Fiscal policy is an integral part of the country's overall economic policy.

There are two forms of government expenditure: one is government purchase, which refers to the government's expenditure on goods and services-buying tanks, building roads, paying judges' salaries, etc. The other is government transfer payment to increase the income of some groups (such as the elderly or the unemployed).

Taxation is another form of fiscal policy, which affects the overall economy in two ways. First of all, taxes affect people's income. In addition, taxes can also affect commodities and production factors, so they can also affect incentive mechanisms and behaviors.

The contents of fiscal policy include:

◆ Total social products

◆ National income distribution policy

◆ Budget revenue and expenditure policy

◆ Tax policy

◆ Financial investment policy

◆ Financial subsidy policy

◆ National debt policy

◆ Extrabudgetary fund revenue and expenditure policies, etc.

They complement each other.

Narrow monetary policy: refers to the sum of policies and measures adopted by the central bank to achieve the established economic goals (stabilizing prices, promoting economic growth, achieving full employment and balancing international payments), and thus affecting the macro-economy.

Broad monetary policy: refers to all monetary laws and regulations and all measures adopted by the government, the central bank and other relevant departments that affect financial variables. (including financial system reform, that is, changes in rules, etc.). )

The main difference between the two is that the policy makers of the latter include the government and other relevant departments, who often influence exogenous variables in the financial system and change the rules of the game, such as rigidly limiting the scale and direction of credit and opening up and developing financial markets. The former is that the central bank uses discount rate, reserve ratio and open market business in a stable system to change interest rates and money supply. At present, China implements a moderately loose monetary policy and a proactive fiscal policy.

Monetary policy is implemented through the government's management of the national currency, credit and banking system. The nature of monetary policy (the way the central bank controls the money supply and the relationship between money, output and inflation) is one of the most attractive, important and controversial fields in macroeconomics. The government has a variety of policy tools that can be used to achieve its macroeconomic goals. These mainly include:

(1) fiscal policy includes government expenditure and taxes. The main purpose of fiscal policy is to influence long-term economic growth by influencing national savings and encouraging work and savings.

(2) Monetary policy is implemented by the central bank, which affects the money supply.

By adjusting the money supply, the central bank affects the interest rate and credit supply in the economy, thus indirectly affecting the total demand, so as to achieve the ideal balance between total demand and total supply. Monetary policy can be divided into expansionary and contractive.

Expansionary monetary policy is to stimulate aggregate demand by increasing the growth rate of money supply. Under this policy, it is easier to get credit and interest rates will be reduced. Therefore, when the total demand is low relative to the economic production capacity, it is most appropriate to use expansionary monetary policy.

Tight monetary policy is to reduce the level of total demand by reducing the growth rate of money supply. Under this policy, it is more difficult to obtain credit and interest rates will increase. Therefore, when inflation is serious, it is more appropriate to adopt tight monetary policy.

The object of monetary policy adjustment is the money supply, that is, the total purchasing power of the whole society, which is embodied in the cash in circulation and the deposits of individuals, enterprises and institutions in banks. Cash in circulation is closely related to the change of consumer price level, and it is the most active currency, which has always been an important goal for the central bank to pay attention to and adjust.

Monetary policy tool refers to the policy means adopted by the central bank to adjust the intermediate goal of monetary policy.

Monetary policy is a macro policy involving the overall economic situation, which is closely related to fiscal policy, investment policy, distribution policy and foreign investment policy. Comprehensive supporting measures must be implemented to maintain monetary stability.

According to the definition of the central bank, the monetary policy tool library mainly includes open market business, deposit reserve, refinancing or discount, interest rate policy and exchange rate policy. From an academic point of view, it can be roughly divided into quantitative tools and price tools. Price instruments are mainly reflected in the adjustment of interest rate or exchange rate level. Quantitative tools are more abundant, such as central bank bills for open market business and reserve ratio adjustment. Its focus is on regulating the money supply.