How to Coordinate the Roles of Fiscal Policy and Monetary Policy
DOI:
https://doi.org/10.71222/93b47r76Keywords:
fiscal policy, monetary policy, macroeconomic management, policy coordination, economic stabilityAbstract
Fiscal policy and monetary policy are two critical tools in macroeconomic management. Their coordination and synergy are essential for achieving economic stability, growth, and resilience against risks. This paper explores the fundamental characteristics and roles of fiscal and monetary policies, analyzes their interactions and common conflicts across different economic phases, and discusses pathways for coordination through consistent goal setting and robust implementation mechanisms. By examining domestic and international case studies, the paper identifies key factors for effective synergy and provides recommendations tailored to China’s economic context. These insights aim to offer both theoretical support and practical guidance for achieving more efficient macroeconomic governance.
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