Abstract

Fifty years of Chinese reform and policy changes in the research cycle, a variety of angles, from a financial perspective for the study revealed a good institutional change in the law of government behavior. 1949-1978 1978 - 2001 is the Chinese government's financial pressure fluctuation cycle, in the process, the evolution of public policy affecting the contract complete, short-term fiscal crisis caused by government policy operations and cumulative effect, income differentiation resulting system stagnation, the authority appear in collective action. There are many perspectives to study the alterations of public policies in the cycle of China's reformation during the past fifty years, among which the study from the fiscal perspective can discover the rules of the government actions in the reform of political system. During the two periods 1950-1978 and 1979-2001, that China government faced different fiscal pressures, there were many phenomena appeared. The evolvement of the public policies determined the perfectibility of the contracts. Fiscal crisis made the government take the policy management in short run to produce the cumulative effect. Income differentiation caused institution rigidity and the authorities emerged