On China's current economic policy: Active fiscal policy and prudent monetary policy

Abstract

The purpose of this paper is to analyze the active fiscal policy and prudent monetary policy issued by CPC Central Committee Political Bureau in 2011 Economic Work Conference, and their effect on 2011's overall economic situation. Firstly, we elaborate the categories and roles of macroeconomic policy. Secondly, we analyze the meanings of active fiscal policy and prudent monetary policy. Lastly, we describe their effect from the perspectives of price stability, improving people's livelihood and promoting sci-tech progress respectively.