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The US Macroeconomic Policy Coordination during Financial Crisis and Implications for China(No.189, 2016)


By Wu Zhenyu, Wu Chenchen & Lan Zongmin, Research Team on “Case Study of International Macroeconomic Policy Coordination”, DRC

Research Report No.189, 2016 (Total 5072) 2016-12-23

Abstract: The international macroeconomic policy coordination is an important support for the US government to effectively address financial crisis. Propelled by both domestic and foreign policies, the United States was the first to achieve economic recovery among developed economies. The US Treasury Department and Federal Reserve play the leading role in coordinating the implementation of international macroeconomic policy. While extensively utilizing multilateral coordination platforms like G7 and G20, the US government took a positive manner in creating new mechanisms like joint rate cuts and currency swaps through informal bilateral and multilateral policy coordination measures. The purpose of and forms in implementing these measures made appropriate adjustments in light of economic performance. As China’s macroeconomic policy shows increased externalities, the government needs to strengthen international economic policy coordination. On the basis of the improvement of domestic policy coordination, efforts should be made to encourage relevant departments to conduct coordination relating to formal and informal international economic policies. By making full use of present platforms, the government needs to take the opportunity of enhanced economic power and gradually establish new platforms and mechanisms adaptable to domestic conditions.

Key words: international financial crisis, macroeconomic policy coordination, macro-control