The Evolving Role of Fiscal Policy in Centrally Planned Economies Under Reform: The Case of China

46 Pages Posted: 15 Feb 2006

Date Written: March 31, 1989

Abstract

Market-oriented economic reforms in centrally planned economies have altered the functions and objectives of key policy instruments, particularly in the case of fiscal policy. As a result of reform, economic management requires the use of "indirect" levers to regulate the behavior of increasingly autonomous economic agents. In this respect, fiscal policy becomes central and its macroeconomic role is enhanced. This paper studies the recent Chinese experience, reviewing fiscal developments and analyzing the effectiveness and appropriateness of available fiscal instruments in performing their newly enhanced macroeconomic role.

JEL Classification: 124, 320, 052

Suggested Citation

Szapary, Gyorgy, The Evolving Role of Fiscal Policy in Centrally Planned Economies Under Reform: The Case of China (March 31, 1989). IMF Working Paper No. 89/26, Available at SSRN: https://ssrn.com/abstract=884675

Gyorgy Szapary

Magyar Nemzeti Bank ( email )

Szabadsag ter 8-9
Budapest, H-1850
Hungary

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