Abstract:

Sustainable development is the harmonious unity ofeconomic, social and environmentaldevelopment. Itnotonly is relevant to a nations' natural resources, but also has internal relations to such systems as national financial policy and currency policy,taking as its manifestation the balance between product market,currency market and special service market relevant to society and environment. Consequently, by means of rational application of financialpolicy and currency policy, a nation can achieve the coordinative development of society, economy and ecology.In this paper, social sustainable developmentSH curve and ecological sustainable development SE curve were merged into sustainable developmentSD curve, and further into IS—LM model，and thus reaching the conclusion that a nation can exercise financial policy and currency policy so as to regulate and affect its economic development, affect the balance of product market,currencymarket and special servicemarket, and finally realized the sustainable development of economy, society and ecology.

Key words: IS—LM mode, l IS—LM—SD mode, l financial policy, currency policy, sustainable development