Zhu Yingzi, Director of Finance Department at Tsinghua School of Economics and Management: The Key to Fiscal and Monetary Policy Coordination Lies in Aligned Objectives, Complementary Tools, and Smooth Transmission

People’s Financial News, March 13 — This year’s government work report clearly states the continuation of a “more proactive fiscal policy” and a “moderately relaxed monetary policy,” with the deficit rate set at around 4%, totaling a deficit of 5.89 trillion yuan. It plans to issue 1.3 trillion yuan in ultra-long-term special government 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 the synergy between fiscal and monetary policies in 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 effort. Complementary tools mean paying more attention to the “combined use” of policy instruments to improve the coordination efficiency of fiscal funds and financial resources. Smooth transmission involves prioritizing solving transmission bottlenecks and balancing medium- and long-term transformation.