Consumption, Consumer Credit And Financial System

This essay devotes to the analysis of the mutual relationship among consumption, consumer credit, and the financial system.This essay is made up of three parts. The first is the introduction of the theory of consumption. The second part analyzes the mechanism among consumption, liquidity constraint and consumer credit. And it continues to compare the different status of consumer credit policy and positive financial policy. The last part analyzes the mechanism between consumer credit and the financial system.The first chapter is the introduction of the studies on consumer credit home and abroad.The second chapter at first introduces the theory of consumption. Then using these theories analyzes the cause of the decline of Chinese citizens' consumption in cities and towns in the view of the change of Chinese citizens' consumption behavior. Our findings are that uncertainty and liquidity constraint mainly result in the decline of Chinese citizens' consumption in cities and towns. So we have explained the inner the mechanism between the decline of consumption and consumer credit. The last, we analyze the manifestation and institutional cause of liquidity constraint in China.The third chapter at first analyzes the trend of demand policies' focus: from the investment fields to the consumption fields. Then we compare the different status of consumer credit policy and positive financial policy in the view of social reproduction and the exchange of money. Secondly we discuss the adaptation and the shortcomings of positive financial policy. At last, we also discuss the negative of consumer credit policy.The fourth chapter analyzes the trend and present situation of the structure of financial institutions which provide consumer credit. On the base of it, we maintain that versatile and multi-level financial institutions which provide consumer credit should be set up in China in order to satisfy the need of the development of consumer credit.