Analysis on Chinese Economic Development Under Post-Financial Crisis Environment Based on IS-LM Model

Jiaxuan Wang
2021 Advances in Economics, Business and Management Research   unpublished
After the subprime mortgage crisis occurred in the United States, the worldwide financial turmoil not only resulted in a series of serious negative consequences in the global financial field, but also brought a relatively big impact for our country's economy. In order to response the global financial crisis, Chinese government has implemented a moderately loose monetary policy of continuous "double rate" reduction since the end of 2008. Based on the IS-LM model, together with the data, about
more » ... nese GDP and Monetary growth rate from 2008 to 2019, collected through the website of Bank of China and other relevant resources, this paper analyzed the effects of the above economic policies. The research result shows that it is very difficult for Chinese market rescue policy to achieve results in the short term, and it is necessary to explicit the direction of investment and the focus of monetary policy in order to promote sustainable and stable economic growth.
doi:10.2991/assehr.k.211209.324 fatcat:g6pvqkhzknhgtctq3z6rddwllq