Cass: Fiscal and monetary policy to be deepened on 09 basis

Xinhua Beijing, December 7, the Chinese Academy of Social Sciences 7th released the "Economic Blue Book" pointed out that the 2010 continued to implement the positive fiscal policy and moderately easy monetary policy in 2009 to promote and deepen the foundation, in conjunction with the National Development task to make the necessary adjustments. The Blue Book points out that for an active fiscal policy, the main focus should be on the following five areas: first, to support China's long-term development by choosing a public investment project that combines recent and long-term development. Second, to support the implementation of national climate change response policies, both domestic development needs and international conventions. Third, we should focus on protecting people's livelihood, especially the needs of the State in social security. The other is to improve the income of low-income groups in order to expand domestic demand and increase consumption demand.　　Five, focus on supporting the transformation of technological innovation and economic growth patterns. The Blue Book also pointed out that in order to maintain China's steady and rapid economic growth, for moderately loose monetary policy, involving two layers of meaning: one is to adhere to the true meaning of "moderate easing" and the second is to adjust the situation of excessive easing. For the 2010 moderately loose monetary policy must seriously grasp the strength and improve the level of regulation, to achieve the following three aspects of the grasp:-dynamic grasp moderately loose. Adhere to the implementation of moderately loose monetary policy, in accordance with domestic and foreign economic trends and price changes, pay attention to the use of market-based means of dynamic fine-tuning, grasp the focus of moderately easy monetary policy, intensity and rhythm, properly handle the development of support for the economy and prevent the elimination of financial risks, and further enhance the effectiveness　　Maintain the stability of the financial system. The development of money and credit should be controlled moderately. Flexible use of monetary policy tools, reasonable arrangement of open market tool mix, term structure and operational dynamics, to maintain the liquidity of the banking system and money market interest rate level of reasonable moderation.　　For the current problem of excessive liquidity, we should adopt relevant means to promote the transfer of money into a moderate. --financial reform should be promoted in a timely manner. Financial reform is one of the key points of China's medium and long term reform, to seize the current favorable opportunity, to promote financial reform and structural adjustment, further reform the investment and financing system, start private investment, financial support to change the mode of economic development, and promote the sustainable and stable development of China's economy.