Research on the Relationship between China’s IS Curve and Macroeconomic Variables during the COVID-19 Pandemic: From the Perspective of Consumption, Saving, and Investment

The COVID-19 pandemic emerging in 2020 has profoundly impacted China’s economic landscape, disrupting macroeconomic operations and altering micro-behaviors like household consumption and corporate investment. Existing studies focus on single variables, such as the "precautionary saving surge" and reduced corporate investment willingness. This paper analyzes the interactive relationships among consumption, saving, and investment through the dynamic changes of the IS curve during the pandemic, aiming to optimize the IS curve model, improve the macroeconomic analysis framework for emergency events, and offer theoretical references for policy-making. It employs literature research and case analysis, comparing IS curve changes and multiplier effects between lockdown and normalized periods. Existing policies alleviated demand contraction but require optimized coordination. The study suggests a "demand-confidence" mechanism and special investment funds to improve emergency macroeconomic analysis.