Advances in Economics, Management and Political Sciences

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Proceedings of the 2nd International Conference on Management Research and Economic Development

Series Vol. 88 , 10 June 2024


Open Access | Article

The Macroeconomic Policies of China and the United States in Dealing with Economic Shock Based on the IS-LM Model ——Taking the Financial Crisis in 2008 and the COVID-19 in 2020 as Examples

Linkun Yang * 1
1 Capital University of Economics and Business

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 88, 307-313
Published 10 June 2024. © 10 June 2024 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Linkun Yang. The Macroeconomic Policies of China and the United States in Dealing with Economic Shock Based on the IS-LM Model ——Taking the Financial Crisis in 2008 and the COVID-19 in 2020 as Examples. AEMPS (2024) Vol. 88: 307-313. DOI: 10.54254/2754-1169/88/20241060.

Abstract

The financial crisis in 2008 and the COVID-19 in 2020 have had a serious impact on the world economy. Macroeconomic policies are an effective regulatory approach for each country's government to respond to economic shocks. China and the United States, as the two major representatives of socialist and capitalist countries in the world, have distinct representativeness in their macroeconomic policies. The IS-LM model, is an important method for analyzing short-term economics, it can significantly demonstrate the effectiveness of a country's macroeconomic policies, and is an important component of Keynesian theory. By studying the changes in IS curve and LM curve caused by the macroeconomic policies of China and the United States during the financial crisis and the COVID-19 epidemic, it is concluded when dealing with potential economic shocks in the future, the government should implement strong macroeconomic policies, actively regulate supply and demand, and implement macroeconomic policies that are suitable for the country's social system and open economy.

Keywords

Macroeconomic policy, IS-LM model, COVID-19, financial crisis

References

1. Zhou Yi. (2008) Global Financial Crisis. China Economic Weekly. September 15, 48 (2018): 34-35.

2. Gang Xu, Lu Chen, and Yi Zheng. (2020) The impact of the COVID-19 on the world economy. International Research Reference, 05: 1-8+44.

3. Rongcai Zhang. (2023) Comparative Study on Fiscal and Monetary Policies and Their Economic Effects between China and the United States. 223. Chinese Academy of Fiscal Sciences, MA Thesis. doi: 10.26975/dcnki.gccks.2023.000109

4. Yingyi Lai. (2023) Analysis of China's Fiscal and Monetary Policies during the Epidemic Based on the IS-LM Model. Chinese Market. 16 : 5-8+13. doi: 10.13939/j.cnki.zgsc.2023.16.005

5. Fang Cai. (2020) Characteristics of Epidemic Impact and Response Policies. Financial Think Tank 5.03: 5-13+139. doi: 10.20032/j.cnki.cn10-1359/f.2020.03.001

6. Yunfeng Zhang. (1999) The causes of economic fluctuations and the selection of macroeconomic policies. Journal of Zhengzhou Aviation Industry Management College, 03: 45-48

7. Qianjin Lu, Jingyi Luo, Lei Wu. (2023) The impact of changes in the Federal Reserve's monetary policy since the financial crisis on China's monetary policy regulation. Financial Market Research. 06: 16-31.

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 2nd International Conference on Management Research and Economic Development
ISBN (Print)
978-1-83558-471-2
ISBN (Online)
978-1-83558-472-9
Published Date
10 June 2024
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/88/20241060
Copyright
10 June 2024
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated