Research On Influence Of Asset Bubble To Financial Security In China

After the subprime debt crisis happened, people are paying more and more attention to the financial security, because the Finance has changed its role from a promotion to economic development to a reason of the economic insecurity. Now, most discussions about this question focus on the influence caused by financial crisis, but as most crises in history are connected with asset bubble, this dissertation studies from the point of burst of asset bubble, uses comparative study and qualitative methods to do the research about asset bubble and financial security.Firstly, this dissertation elaborates and summaries the conceptions, features and connections about asset bubble and financial security, points that the financial security is a very composite concept, its biggest feature is relevance and wide-ranging. And asset bubble and financial security are highly connected. Based on this theory, the dissertation analyses the mechanism of the way how asset bubble influents financial security. Then it discusses details of this mechanism from three ways: the micro way, the meso way and the macro way. The micro way is the mechanism about personal and financial institution, the meso way is about financial industry while the macro way is about the tax policy of the country and international capital flows. After this analysis, the dissertation concludes that there are several ways of connection from asset bubble to financial insecurity. Then the dissertation analyses the current situation in China, points that asset bubble has already happened, and the current monetary policy and the regulations from central bank have some vulnerabilities. Because of this, we should not neglect the problem of financial security any more. Then it compares the Japan and American examples about how the burst of asset bubble affected financial security. The last part of the dissertation proposes recommendations such as: guiding the anticipation of the public, bringing the asset price into one of the goal of the monetary policy and establishing warming mechanism of the financial security etc. which are all based on the former, discovered problems.