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

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  • International Monetary Fund

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.

Suggested Citation

  • International Monetary Fund, 1989. "The Evolving Role of Fiscal Policy in Centrally Planned Economies Under Reform: The Case of China," IMF Working Papers 1989/026, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1989/026
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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=27434
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    Cited by:

    1. John M. Litwack, 1993. "Issues in the Creation of Fiscal Legality in the Economies of the Former USSR," Eastern Economic Journal, Eastern Economic Association, vol. 19(3), pages 355-364, Summer.

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