Steady monetary policy refers to the central bank's stable monetary policy operation with relatively stable money supply growth.
A proactive fiscal policy is an expansionary fiscal policy, that is, increasing government expenditure to expand the total social demand, including increasing government procurement, increasing government transfer payments, and reducing tax rates.
Adhere to a relatively loose fiscal policy and mainly support supply-side reform and economic growth. Monetary policy aims at monetary stability, correctly handles the relationship between preventing financial risks and supporting economic growth, and maintains moderate growth of money supply on the premise of improving loan quality, which can support the sustained, rapid and healthy development of the national economy.
Monetary policy, that is, financial policy, refers to various principles, policies and measures adopted by the People's Bank of China to control and regulate the money supply and credit quantity in order to achieve its specific economic goals. The essence of monetary policy is that the country's money supply adopts different policy trends such as "tight", "loose" or "moderate" according to the economic development in different periods.
Using various tools to adjust the money supply to adjust the market interest rate, the change of market interest rate will affect private capital investment and total demand to affect macroeconomic operation. The three tools of monetary policy to adjust aggregate demand are statutory reserve ratio, open market business and discount policy.
Fiscal policy is the basic criterion formulated by the state to guide fiscal distribution activities and deal with various fiscal distribution relations. It is a reflection of the objective financial distribution relationship on the will of the state.
Under the condition of modern commodity economy, fiscal policy is also a tool for the state to intervene in the economy and achieve macroeconomic goals. The fiscal policy of all exploiting class countries is to maintain their super-economic exploitation relationship. When its rulers are on the rise, they can often conform to the historical development trend to a certain extent and adopt a fiscal policy more suitable for the development of productive forces. However, with the intensification of various social contradictions, fiscal policy will be increasingly unable to meet the requirements of the development of productive forces, thus hindering social and economic development.
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