The Impact of Demand Management Policies on the Local Economy Under the Background of the Domestic Big Cycle

Abstract

In this paper, the important background factor of the domestic big cycle is incorporated into the DSGE model. On the basis of this model, this paper uses actual data of China’s economy, through Bayesian estimation and dynamic simulation methods, and believes that in this context, in order to stimulate the economy, the country has adopted a combination of expansionary fiscal
policy and expansionary monetary policy. While curing diseases, macroeconomic policies inevitably have some side effects on the local economy, such as increasing the financial burden of local governments and increasing the uncertainty of the number of orders for export enterprises.