Jing Cang

Jing Cang

December 30, 2025

China, Fiscal policy practice, Mainstream macroeconomics, Examination and correction.

Macroeconomic policy is a central component of mainstream macroeconomics and a core issue in the application and research of macroeconomic theory. It has always been a focal point of interest for both economists and the public. By analyzing the guiding principles, objectives, content, and system of China's fiscal policy during the 13th and 14th Five-Year Plan periods, it is argued that China's fiscal policy differs from the short-term aggregate demand management policies primarily aimed at stimulating the economy and promoting employment as seen in mainstream macroeconomics. Its content is richer and has transcended the theoretical framework of Western mainstream macroeconomics on fiscal policy. China's fiscal policy is people-centered, with the vision of shared prosperity, emphasizing both aggregate balance and structural coordination on the demand side and supply side, while also balancing long-term and short-term goals. It possesses continuity, stability, and sustainability, and is more forward-looking and flexible.

© 2025, the Authors. Published by ISCCAC

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