Director of the Tsinghua School of Economics and Management Finance Department, Zhu Yingzi: The key to coordinating fiscal and monetary policies lies in aligned objectives, complementary tools, and smooth transmission.

This year’s government work report clearly states the continuation of “more proactive fiscal policies” and “moderately easing monetary policies,” with the deficit target set at around 4%, a deficit scale of 5.89 trillion yuan, and plans to issue 1.3 trillion yuan in ultra-long-term special national bonds and 4.4 trillion yuan in local government special bonds. Zhu Yingzi, Director and Professor of the Department of Finance at Tsinghua University School of Economics and Management, said that the key to forming a synergy between fiscal and monetary policies by 2026 is to achieve “goal alignment, complementary tools, and smooth transmission.” Goal alignment means that fiscal and monetary policies should focus on “expanding domestic demand, stabilizing expectations, and promoting price recovery” to form a unified direction of effort. Complementary tools mean paying more attention to the “combined use” of policy instruments to improve the linkage efficiency of fiscal funds and financial resources. Smooth transmission means prioritizing solving transmission bottlenecks and balancing medium- and long-term transformation. (People’s Financial News)