Abstract: The proactive fiscal policy has the functions of both stabilizing growth and adjusting structure. It is not only a necessary measure for high-quality economic development, but also an important part of deepening the reform of the fiscal and taxation system. By making use of the counterfactual analysis of historical shock decomposition based on DSGE model and DSGE-VAR impulse response, this paper studies the effects and characteristics of the proactive fiscal policy tools. The findings show that the proactive fiscal policy has a replacement effect between government and private sector leverage, and the coordination between total volume expansion and structural adjustment can effectively increase the fiscal policy space. The proactive fiscal policy can support the effectiveness of monetary policy. The role of the fiscal transfer payment in promoting growth is more obvious through the short-term demand side, while the productive fiscal payment is more conducive to employment through the long-term supply side. Therefore, this paper suggests to optimize and perfect the proactive fiscal policy from the three aspects: the first is to consider the sustainability of the proactive fiscal policy from a more comprehensive and long-term perspective; the second is to further explore a high-level coordination mechanism between finance and monetary policy, so that a joint force can be formed by them; the third is to consider the time and regional characteristics of the different fiscal policy instruments, adopting different development strategies to give full play to their own advantages.

Key words: proactive fiscal policy, monetary policy, financial transfer payment, stabilizing growth