Abstract: Based on the provincial panel data from 1997 to 2013, this paper empirically analyzes the actual effects of China’s fiscal macro policies on the promotion of economic stability. The result shows that: (1) China’s macro economy presents a significant cyclical feature; (2) the current fiscal macro policies are not effectively playing a role of promoting economic stability, namely, the fiscal revenue policy can help stabilize the economy and prevent inflation only to a certain extent, and the role played by fiscal expenditure policy is only reflected in economic output; (3) further analysis of periodic fluctuation stages shows that such conclusions are robust. Therefore, in order to give full and effective play to the economic stability function of the fiscal macro policies, it is necessary to deepen the reforms of the financial system and the corresponding economic systems. At the same time, do not rely excessively on macroeconomic regulation and control; attention should be paid to the perfection of the micro-institutional arrangement in the socialist market economic system.

Key words: fiscal macro policy; economic fluctuations; economic stabilization function; economic cycle