Economics Essay代写:财政政策

2017-02-07 09:38

众所周知，政府总是用财政政策和货币政策来调节经济。财政政策是政府财政工作的指导原则，它是根据一定时期的政治、经济和社会发展任务制定的，通过财政支出和税收政策来调节总需求。也可以说，财政政策是政府通过改变财政支出和收入影响就业和国民收入来影响总需求的政策。扩张性财政政策可以增加国民收入，降低失业率。紧缩的财政政策会增加失业率，降低国民收入。

Economics Essay代写:财政政策

As we all know, the government always uses Fiscal policy and monetary policy to regulate the economy. The Fiscal policy is the guiding principles of the government’s financial work, it is formulated according to the certain period of politics、economy and the task of social development, and it regulates aggregate demand through fiscal spending and revenue policy. It can also be said that the Fiscal policy is the policy that the government influence aggregate demand through changing the fiscal spending and revenue to affect employment and national income. However the expansionary fiscal policy could increase national income and reduce unemployment rates. And the tighter fiscal policy could increase unemployment rate and reduce national income on the contrary.The instruments of Fiscal policy are the financial means and measures taken by the government to achieve fiscal policy objectives. It mainly includes the fiscal expenditure and fiscal revenue. The fiscal expenditure policy consists of two parts, the first is the government spending and the second one is transfer payments. And the fiscal revenue policy mainly includes tax and national bonds, among which, tax is the major component of the fiscal revenue policy. Before the 1930s, almost all the country’s fiscal policy objective is the balance of state revenue and expenditures so as to adapt to the requirements of Laissez-Faire, Free Contention of Capitalistic Economy. However, the economic crises of the 1930s break the balance, and many countries begin to implement fiscal deficit policy. They try to increase government expenditure to reduce unemployment and stimulate aggregate demand, so as to stimulate the development of the economy and alleviate the economic crisis. Even today, many governments like to take the fiscal deficit policy to solve the economic problem. But nowadays the global economy is in downturn. Nearly every country's economic growth rate is falling. So as the government, they have to take the expansionary fiscal policy to save the economy. At this moment, the government could increase government spending and take a cut in tax to improve the speed of economic growth. In the short term, it really does work. The increasing fiscal spending can directly increase the national income, and the tax cuts could reduce people's tax to indirectly increase the national income. So the both policy can increase the national income. When people become richer than before, they will buy something or invest. So the aggregate demand will be stimulated, and the speed of the economic growth will increase. When the fiscal deficit is below 3% of GDP, This situation can be sustainable. However, in the long term, this situation is not sustainable. Because the government always gets less money every year due to the tax cuts, and spends more and more money every year because of the increasing fiscal spending, the deficit gap will become bigger. So the government will take what measures to fill the gap? Due to the fiscal revenue policy mainly including tax and national bonds, the only choice of the government is to issue national bonds. But if the government issues too much national bonds, it will produce three effects. The first is the Crowding Out effect. If there are a large number of national bonds on the market, the price of national bonds will decline. So the Interest rates will increase and it will crowd out private investment and consumption. The second is the currency effects. In order to pay the national bonds, the government have to raise money, however the easiest、the most convenient and the most effective way to raise money is to issue currency. But issuing too much currency will increase inflation rate. People don't want see that. The last is the interest rates effect. When the price of the national bonds increases, the interest rates must decline. On the contrary, the interest rates must increase. So, if the government takes the expansion fiscal policy for a long time, the interest rates will increase all the time. If the interest rate is too high, it will inhibit the development of the economy. So, from the above it can be concluded that the economy will benefit from the increasing fiscal spending and tax cuts as a means of stimulating aggregate demand in the short term. But this policy is not sustainable in the long term.

• 上一篇：Economics Assignment 代写:电信监管
• 下一篇：英国economics essay代写:“脱欧”运动