S. Zeng (PRC)
Dynamic fiscal mode, endogenous parameter, stability analyze, interest rate
The purpose of the paper is policy simulation to China by dynamic fiscal model. The paper analyzes the influence on fiscal stability about interest rate. The paper draws the following conclusions:(1) The rate of national debt balance to GDP will be less than 60% if economic growth rate more than 7% when the rate of national debt balance to GDP is about 12% and fiscal deficit rate is less than 4% at 2000;(2) Currency deflation will increase the rate of national debt balance to GDP.(3)High interest rate will result in fiscal crises.
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