Analyze China's macroeconomic policies at the present stage using the IS--LM model.

Using the IS--LM model to analyze China's macroeconomic policy at this stage is as follows: active fiscal policy, that is, by expanding fiscal expenditure and adjusting income distribution, so that fiscal policy plays a more direct and effective role in initiating economic growth and optimizing economic structure.

1, increase investment, optimize the investment structure

The increased investment by the central government is mainly used for guaranteed housing projects, infrastructure construction in agriculture, education, health care, ecological environment, etc., and to support the recovery and reconstruction of disaster areas. Accelerating rural livelihood projects and rural infrastructure construction, increasing the construction of rural biogas, drinking water safety projects and rural roads, improving the rural power grid, accelerating the construction of major water conservancy projects such as the South-to-North Water Diversion Project and the reinforcement of reservoirs at risk, and strengthening the transformation of large-scale irrigation districts to conserve water

2. Pushing forward with the reform of the tax system and the implementation of the tax reduction policy, reducing the tax burden on enterprises, and promoting investment in enterprises and the consumption of the population to fully implement the Value-added tax transition reform, the value-added tax general taxpayers, allowing new purchases of machinery and equipment contained in the VAT input tax credit in the output tax, and accordingly adjust the standards of small-scale taxpayers and their collection rates, to promote enterprise investment and expand domestic demand. We will continue to implement the policy measures introduced successively in the second half of this year, such as raising the standard of income tax deduction for wages and salaries under the personal income tax, temporarily exempting interest income tax on savings deposits, lowering the rate and unilateral levy of stamp duty on securities transactions, and lowering the taxes and fees on housing transactions, so as to increase the demand for consumption by the residents. Improve and implement the policy of adjusting the export tax rebate rate, in the second half of this year, on the basis of two increases in the export tax rebate rate, since December 1, 2008, to further increase some of the labor-intensive products, electromechanical products and other products affected by a large number of export tax rebate rate

3, adjusting the pattern of distribution of national income, increase the scale of financial subsidies, and promote to raise the income of middle and lower-income people to increase more substantially Comprehensive direct subsidies to farmers for agricultural capital, seed subsidies and subsidies for the purchase of agricultural machinery and other subsidies, and increase the minimum purchase price of grain next year to increase the income of farmers. Raise the level of subsidies for urban and rural low-income insurance, and increase basic pensions for enterprise retirees. It will continue to support the pilot work of realizing basic pension insurance personal accounts for enterprise employees. Raise the standards for pensions and living allowances for people who have benefited from preferential treatment. Implementing fiscal and tax policies to promote employment. Increase transfer payments to the central and western regions, narrowing the gap in income distribution between regions

4, further adjust and optimize the structure of fiscal expenditure, promote the accelerated development of social undertakings, and promote the protection and improvement of people's livelihoods focuses on increasing investment in the three rural areas, education, health care, social security, the construction of guaranteed housing projects, and other areas of people's livelihoods. The key to promoting the protection and improvement of people's livelihoods is to increase investment in people's livelihoods, including the "three rural areas", education, health care, social security and the construction of guaranteed housing projects. Continue to increase the "three rural" investment.

(1) Consolidate and strengthen fiscal and taxation policies to promote the development of modern agriculture, push forward comprehensive rural reform, and promote the overall progress of rural society. Guarantee the priority development of education. In-depth implementation of the reform of the rural compulsory education funding guarantee mechanism and the policy of exempting urban compulsory education students from miscellaneous fees, and further increase the level of public funding for primary and secondary schools in rural areas. We will promote and standardize the pilot scheme of rural old-age insurance, and study, improve and introduce in due course the methods for transferring and continuing the basic old-age insurance relations of urban enterprise employees. Further improve the unemployment insurance system. It will earnestly do a good job in the policy closure and bankruptcy of state-owned enterprises. It will continue to promote the pilot reform of factory-run large collectives in the northeastern and central regions and in some central enterprises.

(2) In addition, against the backdrop of the current decline in fiscal revenue growth, the proactive fiscal policy characterized by tax cuts and expenditure increases is bound to further increase the pressure on fiscal balance. In this regard, the next step will be to continue to grasp the work of increasing revenues and reducing expenditures, strengthening tax collection and management in accordance with the law, cleaning up and standardizing various preferential policies on finance and taxation, resolutely curbing the overstepping of tax exemptions and reductions, and severely cracking down on tax evasion and fraud and other illegal activities.

(3) In general, China's current macroeconomic policy is to implement a proactive fiscal policy and moderately loose monetary policy, to cope with the international financial crisis, and to maintain stable and rapid economic development, we must conscientiously implement a proactive fiscal policy and moderately loose monetary policy, and to further increase the financial support for economic development. To improve supporting policies and measures and innovative institutional mechanisms to mobilize commercial banks to increase the enthusiasm of credit investment, enhance the ability of financial institutions to withstand risks, the formation of banks, securities, insurance and other aspects of the expansion of financing, diversification of risk synergy, and better play the role of financial support for economic growth and promote structural adjustment.