The role of fiscal policy in stabilizing economy in US

Topic 12: Fiscal policy is considered to be important tools and known as stabilizer for
economy. Study the role of fiscal in stabilizing economy in us.
Fiscal policy is considered to be a very important tools known as stabilizer for the
economy. It is used by government to mitigate adverse effects of growing too fast as
well as negative economic growth.

I. Literature review
1. Definition of fiscal policies
Fiscal policy is the setting of the level of government spending and taxation by
government policymakers.
2. Meaning of stabilizer of the economy
According to Keynesian economics, when the government changes the levels of
taxation and governments spending, it influences aggregate demand and the level of
economic activity. Fiscal policy can be used to stabilize the economy over the course
of the business cycle.
The two main instruments of fiscal policy are changes in the level, composition of
taxation, and government spending in various sectors. These changes can affect the
following macroeconomic variables, amongst others, in an economy:
- Aggregate demand and the level of economic activity;
- Savings and Investment in the economy
- The distribution of income
There are there fiscal policies: expansionary fiscal policy, contractionary fiscal policy.
- In a depression: The real output is smaller than potential output and high inflation
rate. In this case, government should apply expansionary fiscal policy by increasing G
and/or decrease T. It leads to an increase in aggregate demand and output, a decrease
in unemployment rate.
- In the economy with a high inlation rate, actual output exceeds potential output,
government should apply contractionary fiscal policy by decreasing G and/or increase
1

T. It leads to a decrease in aggregate demand, otput and inflation rate but an increase
in uneployment rate probably.
AD
E2

AD1
AD2

E0

AD3

E1

0

Y
Y2

Y1

Y0

For detail, when actual output (Y) is larger or smaller than potential output (Yp),
the leaders must adjust to increase or decrease T, G and figure out the elements to effect
the sustainable economic equilibrium. We call it: ∆Y (∆Y= Yp –Y ).
- If government spending is the only tool used in fiscal policy:

So, government spending need to be adjusted:
- If tax is the only tool used in fiscal policy:

So, tax need to be adjusted :
- If both G and T are used in fiscal policy:

So, both G and T need to be adjusted:

( m: the multiple)


- The investment regression analysis: when government spending increases or tax
decreses, GNP (Gross National Product) will rise sharply, which leads to an increase in
money demand. Given money supply, a growth in interest makes a decline im
imvestment. As a result, GNP decreases because of a deep deficit which follows by an
investment regression. Therefore, the effficiency of fiscal poilicy decrease.
3. Important roles of fiscal policy
- Fiscal policy aims to remain balanced budget: in this policy, government always
reaches the balanced budget whatever levels of output are:
In a recession

Solution

- Y- ui>un
- B<0 (G>T)

- G, T no changes
- G, T
- G no changes, T

In a prosperous economy

Solution

- Y>Yp
- ui- B>0 (G
- G, T no changes
- G, T
- G no changes, T

Result
AD Y , u , P
In a recession, a balanced
budget is unstable because
Q, T budget would be
deficit in the future.
Result
AD Y , u , P
Therefore, in the long-run,
budget will be balnaced but
high inflation.

(B= - G + t.Yp)
- Fiscal policy aims to remain long-run level of output: In this policy, government wants
to keep the economy at the potential output and sufficient employment.
In a recession

Solution

- Qa- ui>un
- B<0 (G>T)

- G, T no changes
- G, T
- G no changes, T

In a prosperous economy

Solution

- Y>Yp
- ui- B>0 (G
- G, T no changes
- G, T
- G no changes, T

Result
AD Q , u , P
So, recession is avoided
but budget is in deficit,
therefore solutions for
sponsoring the budget
deficit are needed.
Result
AD Y , u , P
So, the short-run inflation is

avoided but the budget is in
surplus and the economy is
in deficit.


As we mentioned before, fiscal policy with two effective tools tax and
government spending has important roles on stabilizing of the economy, tends to
move the economy toward full employment, encourage economic growth or control
inflation. The stabilization fuction include promote sustained economic growth, low
unemployment rate and price stability. It is expressed by
- To organize resources: The top aim of fiscal policy in many counttries is to organize
resources on private and public sectors. The government of many conutries through
obligatory savings pushes the rate of investment and capital establishment which in
promotes of economic development.
- To accelerate the rate of economic growth: fiscal policy helps to accelerate the rate
of economic growth by raising the rate of investment in public as well as private
sectors. Therefore, various tools of fiscal policy as taxation, public borrowing, deficit
financing and surpluses of public enterprises should be used in combined manner so
that they will not adversely affect the consuption, production and distribution of
weath.
- To encourage socially optimal investment: In underdeveloped and developing
coutries, fiscal policy encourages the investment into those productive channels which
are considered socially and economically desirable. This means optimal investment
which promotes economic development and avoids wasteful and unproductive
investment.
- Persuasion to investment and capital formation.
- To provide more employment opptortunities.
- To promote the stabilization of economy.
- To check trend of inflation.
- To distribute properly national income.

4. Drawbacks of fiscal policy
- Government does not know the value of the core constraints (MPC, MPS, MPM, …)
therefore, it is diffcult to determine the multiplier, which leads to mistakes in
enforcement monetary.


- Fiscal policy contains time delay because of some reasons such as the amount of
time collecting data, processing data, making decision and the time between
implementing policies until it take effect.
- Expansionary fiscal policy is easy to apply while there are many diffculties in
applying contractionary ploicy because in this case, government increase tax and cut
spending at the same time, which leads to instability in the economy.
- Fiscal policy can be applied only in serval project, employment development and
subsidy programs.


II. Fiscal Policies in US
1. Fiscal policies in booming period
In business dictionary, booming period of economy (or can also called economic
expansions) is a period of significant output within a population. The period is marked
by productivity increases, sales increases, wage increases and rising demand. It also is
a period of economic growth as measured by a rise in real GDP.
* In the period 1982-1990 (lasts 92 months)
It is the second longest peacetime economic expansions after the oil crisis in1973
and the energy crisis in 1979 with the great inflation. In the early 1980s, together with
the tax cuts, Reagan – president of The United State - also significantly reduced social
programs. During his tenure, Reagan also conducted a campaign to reduce or
eliminate the activities of government regulatory impact on consumers, jobs and the
environment. However, at the same time, he feared that the United States was
indifferent to his troops after the Vietnam War should have boosted defense spending.

The combination of tax cuts and defense spending boost would overwhelm
reducing the level of spending for domestic programs. The result is the federal budget
deficit increasing outpacing even economic times the severe slump early 1980 from $
74 billion in 1980, the federal budget deficit rose to USD 221 billion in 1986 . it fell to
$ 150 billion in 1987, but then began to increase again. Some economists worry that
the spending and borrowing too much federal government could fuel inflation, but the
Federal Reserve remains wary of the escalating price controls, maneuver quickly to
raise interest rates any time feel threatened. Federal Reserve Board Chairman Paul
Volcker under and his successor, Alan Greenspan, has kept the central role of
economic traffic cop, dominate both parliament and the president of the national.
* In the period 1991-2001 (lasts 120 months)
For over 9 years (1991-2000), US economic growth, continuous and stable at 24% and reached a record 5.2% in 2000. For the first time since 1969, America had a
budget surplus and maintain for 3 consecutive years (1998-2000), the highest reaching
237 billion USD in 2000. The inflation rate is low, an average of 2% / year (10 years
ago is 3.7 %). The lowest unemployment rate, average 5.3% in 10 years. In just 10
years, labor productivity doubled, from 1.5% / year to 3% / year. By the end of 1999,


the US economy has grown continuously since March 1991, following a period of
economic growth in the longest peacetime in American history. November 1999, the
total number of unemployed people accounted for only 4.1% of the labor force, the
lowest rate in nearly 30 years. And consumer goods prices, rose only 1.6% in 1998
(the lowest rate except for one year since 1964), increased only slightly in 1999 (2.4%
as of October) . There are still many challenges ahead, but this nation has overcome
the twentieth century - the tremendous upheaval of this century - in a state of fitness.
But since Bush took office, the US economy began to stagnate and difficult, especially
since the events 11/9/2001. The growth rate in 2002 was 2.2% (2001 1.1%), high
unemployment (5.9%); trade deficit at a record high (about 420 billion US dollars, up
17% compared to 2001); budget deficit of 159 billion dollars due to large tax cuts
program (1350 billion dollars in the 11 years from 2002).

The financial policy monetary easing to restore and promote economic growth
have been made:
(1) maintain the lowest interest rates in 50 years (1%);
(2) increasing public investment, especially in defense spending;
(3) reduce the dollar prices to promote exports;
(4) the state of twin deficits (balance of trade and budget).
* In the period 2009-2010
For the whole of 2010, the total gross domestic product (GDP) of the economy of
the world increased by 2.9% 1, as opposed to the 2.6% decline in 2009 and to 0% in
2008, while the the strongest growth since 2005, while GDP grew by 3.1%. Thus, US
GDP has grown for six consecutive quarters after experiencing the longest period of
crisis and deepest since the 1930s.
Economic analysts predict this year, the US economy could grow 3 to 3.6%
because of the economic stimulus programs, from the performance of tax cuts for two
years worth of 858 billion dollars that Congress passed last year, to the continued
implementation of the program of the Federal reserve Bank (Fed) to buy long-term
bonds worth 600 billion USD.


2. Fiscal policies in crisis
Crisis economic is a situation in which the economy of a country experiences a
sudden downturn brought on by a financial crisis. An economy facing an economic
crisis will most likely experience a falling GDP, a drying up of liquidity and
rising/falling prices due to inflation/deflation. An economic crisis can take the form of a
recession or a depression
In the period 1929-1933
Crisis 1929 - 1933 was a great depression with the largest scale, the most severe
level of the capitalist world. It is a structural crisis, Americans referred to it as a horror,
the pain. Meanwhile the US is the most developed capitalist countries, but the
distribution system of American society at that very unjust, national income largely

concentrated in the hands of a few people, profit increased from 1922 - 1929 as 76% of
the wages of workers increased by only 33% and employees 42%. Meanwhile, the
profits of the shareholders increased over 100%. Workers do not enjoy their rightful
share in the index of the economy increased. All lead to a crisis of overproduction,
leading to the phenomenon of the small and medium capitalists mass bankruptcy, they
hand out the plant, sinking ships and wealth poured into the sea ... to keep price.
Until the beginning of the Second World War, when the US government to apply
Keynesian economic theory with the main focus is to highlight the role wage growth (to
increase aggregate demand) and the role of the state in the management of the economy,
the new economy recovers.
Production output doubled during the war, unemployment disappeared when women
and blacks are called to participate in the labor force instead of millions of people were
involved in the military. At its height, the US government was borrowing half the
money needed to have the money to pay for the war.
In the period 2007–2009
This crisis is the main reason for the US economy into recession since December
2007. NBER (National Bureau of Economic Research) predict this will be the most
severe recession in the United States since the Second World War. On average, each
month from January to September 2008, there are 84 thousand US workers lost jobs.
A series of financial institutions including the giant financial institutions and
bankrupt long pushed the US economy into a credit hunger. In turn, the credit hunger


affecting the manufacturing sector that now have to downscale production, laid off
workers, cut input import contracts. Rising unemployment negatively impact earnings
and thereby to consumption of households to make the now hard to sell the goods.
Many businesses go bankrupt or are at risk of bankruptcy, including three automobile
manufacturers of the United States is leading General Motors, Ford Motor and Chrysler
LLC. The leaders 3 carmaker has instigation Congressional relief, but without success.
Monday December 12, 2008, GM had announced a temporary closure of its 20 factories

in North America. Reduce consumption, redundant power and industrial goods led to
the general price level of the economy falling steadily, pushing the US economy may be
a risk of deflation.
The crisis also makes the US dollar rose. Because the US dollar is the common
means of payment in the world today, so global investors bought dollars to improve its
liquidity, the US dollar pushed up prices. This makes US exports damaged.
As soon as the credit crisis erupted secondary housing, the Fed began to intervene by
lowering interest rates and increasing purchasing MBS. Until the development of the
financial crisis of August 2007, Federal Reserve System United States (Fed) has
continued to conduct monetary easing measures to boost liquidity for financial
institutions. Specifically, the overnight lending rate interbank been reduced from 5.25%
over 6 session to 2% only in less than 8 months (18/9 / 2007-30 / 4/2008). Interest rates
are then also continued to decline and to date only 0.25% 16/12/2008, interest rates near
0 rare.
The Fed also conducted open market operations (buying up US government bonds
that the country's financial institutions have) and rediscount interest rate cuts. Between
December 2008, the Fed announced plans to implement loose monetary policy face
amount.
December 2007, the US government has created and delivered to the Federal
Reserve Term Auction chaired Facility program to grant short-term loans with a term of
28 to 84 days according to the highest interest rate that financial institutions pay
auction. As of November 2008, there were 300 billion dollars by the Fed provides loans
under this program. The Fed also conducts mortgage lending for financial institutions
with total amount to 1.6 trillion as of November 2008.
February 13, 2008, President George W. Bush signed the Economic Stimulus Act of
2008 under which the government will implement a stimulus program worth 168 billion
aggregate dollars mainly in the form of personal income tax refund .


Facing serious financial crisis, the Bush administration has adopted the

parliamentary finance package of 700 billion dollars. Initially the US House by US
Democratic majority rejected the charges, saying that money can not be too much to
rescue financial institutions in trouble. But after plans to use 700 billion dollars were
spent for adjustment towards the program serves numerous citizens to stimulate
consumption (such as help for the unemployed, nutritional support for the poor and the
low income, infrastructure development), thereby prop up the economy, it was the
Senate passed. October 3, 2008, President Bush signed the Emergency Economic
Stabilization Act of 2008 allows for the implementation of 700 billion dollar stimulus
package this.
In the period 2010-2011.
Budget deficits California state tends to rise to 38.2 billion, exceeding 48% of the
total expenditure estimate approved state budget. Entering the period 2007 - 2008,
"bubble" of the US real estate burst, making the state a deficit of 50% of the approved
cost estimates (using remedial expenditure of the crisis). Not stopping there, the state
budget deficit of the state also increased to 52.8% in the period 2010-2011.
Fiscal crisis of the state of California due to the following reasons:
First, revenues from taxes while reducing spending to overcome the consequences of
economic crisis increases. The main revenue of the state personal income tax (PIT)
account for about 50%, sales taxes accounted for 35%, corporate income tax (CIT) and
11% of taxes and other charges accounted for 4 %. It is easy to see, after the economic
crisis - financial, people's income plummeted greatly affect personal income tax
revenues of the state, while difficult to reduce spending, leading to soaring budget
deficit.
In late 2001, when the "bubble" burst in information technology sector, the income
of the 50% of people, undermine aggregate demand in the economy, led to a sudden
decrease in budget revenues, budget balance California break sudden switch from
positive to negative. Similarly, in late 2007 early 2008, the real estate bubble in the US
burst, causing bank 2 (Fannie Mae and Freddie Mac) specializes pledge, lending real
estate crash ...
After facing this crisis, the state budget deficit in the state's surge of up to 50% of

total budget expenditure per period from 2008 to 2010, 2.5 times the average deficit of
all the states in America.


Second, the tax system of the State of California has revealed many weaknesses, less
competitive compared to other states. Meanwhile, due to high marginal tax rates (above
10%), the tax burden is not only ranked No. 4 out of 50 states that has a rigid
institutional system. The state tax system is outdated, lack of taxes levied on the ecommerce transaction. Meanwhile, according Lifsher (2011), just apply the tax rate is
very small (less than 1%) in the e-commerce transaction that has been able to bring
billions of dollars for the state budget.
Third, the stringency of state institutions has made fiscal policy becomes disabled.
The offer old law (Proposition 13, Proposition 98) has limited gains tax revenues.
Moreover, the state institutions also allow residents voluntarily offer athletes create new
law, to achieve the problems of public services themselves - a form of direct democracy.
In addition, the rule of absolute majority is blamed for more curb fiscal discretion
when government tax reform proposal. These defects have caused the collection of the
State Budget of the state faced many difficulties, leading to the budget deficit for years.
No less fiscal measures was submitted to the State Council, but ultimately just solution
"austerity", accompanied by a shortage of quality public services (Senik 2009).
With high levels of public debt and the difficulties of the "fiscal cliff", the US
economy is facing financial difficulties. 3/2013 early May, the US has cut $ 85 billion
fiscal 2013 budget under the program automatic cuts agreed upon in 2011. The move is
the biggest economy under pressure the world and the measures to stop tax breaks that
many Americans have to pay higher taxes.
The US government spent more than $ 3.5 trillion / year, US public debt is about
16.7 trillion dollars and continues to increase because the government spends more than
it collected. It is estimated that between January 10/2013, the Ministry of Finance will
be only about 50 billion dollars and this amount is insufficient to cover the additional
expenditure a long time to come. If you do not raise the debt ceiling, the US
government debt default risk in mid-May 10/2013. America has set a target of 1.75% of

GDP would reduce government spending in 2013, 0.5% greater than the GDP of 2012.
However, the problem that the whole world is concerned that the current program of
quantitative easing QE3 economy this world leader. The US will begin signaling
program cuts $ 85 billion monthly bond purchases at the end of 2013 and will stop in
May 2014 6/2013 soon have an impact on the stock market and pushed prices US dollar
rose. However, the FOMC decided to keep this program on the date 09.18.2013. This
decision had a very strong impact on prospects for recovery of the world economy.


To overcome the state budget deficit last for many years, it is thought this state
should comply with the following solutions:
First, loosen the rules a majority of votes in each decision tax reform, removing
institutional bottlenecks for tax reform by easing the current regulations on the
maximum majority vote of majority rule often (over 50%) instead of 2/3. According to
researchers Senik, the recent legislative reforms have in common is the proposed rules
states should give up majority vote and return a majority usually practices (simple
majority) whenever information through budget and tax reform.
Demonstrate that, recently, the institutional reform of the State of California has
achieved initial success the result of the loosening of rules up to a majority vote.
Recommended enacted 25 laws in 2010 is a typical example. Recommended this law
has done through the budget and cut spending without sufficient consensus 2/3 votes.
Loosen rules Maximum majority vote will bring many benefits for California's fiscal
as: (i) Reduce the veto in the rules simple majority vote will alleviate focus competent
to decide the last of the legislative body, apparently to bring feasible when each bill
clearance budget or tax reform; (Ii) Principles simple majority vote to create a fiscal
policy in terms of cost effectiveness; (Iii) Rule simple majority vote will solve the root
of all failure of fiscal policy, up more opportunities to the budget on time and minimize
the structural budget deficit.
Second, reduce the impact initiatives in the evaluation process to decide on the
budget. Process innovation is a form of "small corridors" alongside uses legislature.

Through this process, interest groups can participate in and influence the legislative
decision-making, thus creating a counterpart to the legislature. Two researchers
Christensen and Legreid through research on the positive relationship between the
people's satisfaction and confidence of the public has concluded that the public's
confidence has increased the operating efficiency of the government .
To choose appropriate policies, a number of criteria can be used to assess not to
mention as feasibility, limited time and cost efficiency benefits of the policy. Feasibility,
option 1 is the appropriate policy. As current trends, most of the states in America have
implemented rules simple majority vote to adopt the budget and tax reform, except for
the states of Arkansas, California and Rhode Island, while spot policy select 2 as
inappropriate because it is the process of innovation are most states apply. Time limits,
policy options are first admitted. Exigencies of the state government, the state
legislature and the residents is to adopt the budget on time and to reform the tax system


to help states early exit persistent deficits and debts. Meanwhile, the relaxation process
initiatives will take time to restore the public's confidence on the government and
parliament.
Cost efficiency benefits of each policy option, option one is the preferred policy one.
For the implementation of rules loosening up the most votes will be less costly due
legislative processes at an angle certain to be narrow and reduce costs, while the policy
options are very expensive 2 due process of democratic centralism through the
referendum is often very expensive. Overall, based on the above criteria, the first policy
option would be more feasible to be able to change the stalemate of the state budget.
3. Fiscal Policy in 2015 and future
The U.S. government tends to spend more money than it takes in, and thus has
incurred fiscal deficits almost uninterruptedly during the past several decades. The only
time when the government managed to balance a budget in recent history was between
1998 and 2001, when the strong economy resulted in higher-than-usual tax revenues.
The fiscal deficit reached the highest point since 1945 in 2009 at 9.8% of GDP, but has

improved progressively since then; the deficit dropped to 4.0% of GDP in 2013.
The largest portion of government spending is mandated by existing laws, with a
large amount of funds allocated to entitlement programs such as Social Security and
Medicaid. Mandatory spending represents nearly 60% of total government spending.
The remainder is referred to as discretionary spending, and is determined by the annual
federal budget. About half of the discretionary budget is spent on the military and
defense, with the other half spent on government programs and public services.
Nearly 50% of tax obtained by the U.S. government comes from income taxes on
individuals, with an additional 10% coming from income taxes on businesses and
corporations. Another 35% of collections come from payroll and social security taxes.
Excise taxes charged on goods such as liquor, tobacco and gasoline bring in a smaller
amount. Tax revenues equaled about 18% of GDP on average between 1970 and 2010.
The stimulus package introduced by the Obama administration in 2009 included
USD 288 billion in tax cuts and incentives. Less than two years later, Obama announced
an extension to the tax cuts that had been introduced during the Bush administration at a
cost of more than USD 400 billion over two years.
In 2016, the United States will call on G20 countries to use fiscal policy in order to
boost global demand, a senior U.S. Treasury official said on Monday. "We will urge


greater use of policy space, including fiscal space, to bolster global demand. That would
lead to strengthened confidence and I would expect reduce volatility," the Treasury
official said in a preview call with reporters ahead of a G20 meeting later this week in
Shanghai, China.
G20 finance ministers, including U.S. Treasury Secretary Jack Lew, and central
bank governors will meet on Feb. 26-27, with sagging global growth, divergent
monetary policies and currency devaluations set to dominate the agenda.
While there, the United States will also urge all members to refrain from
manipulating exchange rates for competitive purposes, in line with existing G20
commitments, said the official, who spoke on condition of anonymity.

"I see those commitments as being a strong indication from G20 members that they
will manage their currencies in ways that are globally consistent. I think that those
commitments are very, very important," the official said.Lew has repeatedly called on
China to more clearly communicate its currency policies and actions amid uncertainty
over Beijing's transition to a market-determined exchange rate.Recent Chinese efforts to
improve its communications have been constructive, the official said.China's economic
slowdown has also skittered financial markets as it seeks to rebalance its economy
toward consumption-led growth.The senior Treasury official said that supply-side
reforms in China were "crucial" as it pivots to a stronger services sector, and praised the
country's ongoing efforts to reduce excess capacity.

4.


III. Conclusion
Fiscal policy experts and policymakers, like monetary policymakers, are often
grouped into crude bins. Fiscal hawks care about the long-run deficit and want
immediate action to get it down; fiscal doves care about unemployment and want to
use fiscal stimulus to reduce it. My argument is that we need an approach that firmly
embraces both points of view. We have learned from the crisis that persistent long-run
deficits are very dangerous and that fiscalstimulus is a very effective countercyclical
tool. Unfortunately, the same power that makes fiscal stimulus so helpful in a
downturn means that immediate moves to deficit reduction are likely to greatly
exacerbate the unemployment problem.
For developed countries such as the United States, Japan, the United Kingdom, and
France, whose long-run fiscal conditions are serious but where markets are not yet
very concerned, the fiscal consolidations can and should be so back-loaded that they
are actually expansionary in the near term. Temporary moves to reduce unemployment
more quickly will help minimize any permanent toll the Great Recession takes on
these countries. And in trade surplus countries, such as Germany and China, fiscal

expansion to increase domestic demand would not only improve their own growth
performance, it could be a prudent and cost-effective way to help their more troubled
neighbors and trading partners.
The policy prescriptions I have described are not easy to explain to voters or to
ideologues. They are nuanced, and so easily caricatured as undoing with one hand
what the other is doing. Their key element is dynamics—using credible plans for
consolidation to lower borrowing costs and end fiscal crises in the near term, while
not taking immediate austerity measures that would devastate growth and raise
unemployment at a time when what countries need most is to grow.
Reality ,to stabilize the currency market, fiscal policy and monetary policy should
be conducted towards stable interest rates, stable liquidity of the financial system,
development of market segments finance and coordinate the provision of information.
To help stabilize the liquidity of the system of credit institutions, the Ministry of
Finance to exchange timely information on expected revenues and expenditures,
budget; plans to issue government bonds annually, quarterly as a basis for monetary
policy management.
In addition, the need to strengthen coordination to mobilize resources to implement
offset the budget deficit, as well as the mobilization of government bonds for
irrigation and transportation projects in the coming period, especially in term of


mobilization , forms of mobilization, interest rates, the time deposit in the form of
exchange and consultation, to avoid unfavorable developments on the currency
market, negative impact on the macro economy.
At the same time, cooperation should continue to improve the mechanism of
financial management - budgeting - the currency in order to ensure conformity with
international practice, serving the process of integration in the near future. Especially
the checking mechanism, supervision mechanism of non-cash payment ...

IV.

Reference

- Lecture note Macroeconomics.
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