Analysis on the dynamic effects of the aggregate supply, aggregate demand and macroeconomic policies of china based on SVAR model
Jianxin Bi1,2, Lianghai Lei2
COMPUTER MODELLING & NEW TECHNOLOGIES 2014 18(3) 237-248
1 Faculty of Management, University of Shanghai for Science and Technology, 516 Jun Gong Road, Shanghai, China
2 Faculty of Computer and Information, Zhejiang Wanli University, No.8, South Qian Hu Road Ningbo, Zhejiang, China
After studying the financial crisis using the AS-AD model and the SVAR model, the paper analyses the dynamic effects of the aggregate supply, aggregate demand and macroeconomic policies of China. Then, combining the real macroeconomic environment of China at present, the paper discusses the Keynesian AD-AS model, gives the constraint conditions of SVAR model according to the economic meaning of China, makes an empirical study based on five selected variables including supply, demand, fiscal expenditure, monetary expenditure and interest rate and their monthly data correspondingly, and lastly analyses the results of empirical study to make recommendations on current macroeconomic policy adjustment of China.