An Empirical Study On The Changes In China's Liquidity And Its Impact On The Economy-based On The P-star Model

Since the reform and opening policy, China's rapid rise in the level of the currency, "liquidity" problems caused by the theoretical researchers and practitioners of universal attention, but, in the study is still faced with the following shortcomings:First, the concept is still not content consensus; the second is the choice of indicators in measuring the virtual neglect of the impact of economic development; the third is in the evaluation criteria are too subjective.Based on this, on the " liquidity " to further clarify the basis of the concept, mainly to do the following work:First, the use of P-Star Model in China's degree of liquidity is measured, found that between 1978-2009 degree of liquidity fluctuations showing a state where 13 years is facing a liquidity surplus. Second, cointegration tests found, the price gap, output gap and interest rate gap exists between the long-term stable relationship, and the relative output gap is the price level on the effects of changes in China's relatively large. Third, the empirical test shows that excess liquidity moderate economic growth for China has a positive incentive, while the virtual economy, with changes in the price fluctuations more significant impact.