The Research Of Relation Between Excess Liquidity And Asset Prices

In recent years our country mainly adopted moderate looser monetary policy, resulting in the money supply constantly increasing, liquidity increase rapidly. Economic body of liquidity has exceeded moderate range, then it result in the excess liquidity. Meanwhile, stock price and real estate prices soar, directly affects people's daily production and life. So of excess liquidity and asset prices, whether it has contact between excess liquidity affects how asset prices, these problems are worth our further discussed.Based on the academic discussion of liquidity surplus on the hot topic of excess liquidity and research, this paper analyzes the relationship between asset prices, to put forward some Suggestions. In the second chapter focuses on introducing the concept of liquidity and layered definition, all levels of liquidity can be regard as different calibre of money supplyment. The third chapter select quantitative indexes and price index to measure liquidity. Initially determined that, there exist the excess liquidity situation to a certain extent in China, and the manifestations and causes of excess liquidity are analyzed. The fourth chapter analysis liquidity influence of transmission channels of asset prices,excess liquidity effect the asset prices through rate channels and capital channel. The fifth chapter with the help of IS-LM model and based on credit expansion of assets rising model, we can get the theory basis that excess liquidity trigger assets rising. The sixth chapter combined with recent economic data and judge criteria to obtain the excess liquidity index, then select the stock price and the price of real estate as an asset prices, it is concluded into the asset price index. Using E-views software analysis the regression relationship between excess liquidity index and asset price index, found that they are positive correlation, but it restricted by supply and demand of general merchandise, the expected return rate of assets and buffer money amount and such factors. Chapter 7 in front of the study on the basis of the liquidity trigger asset prices rising, puts forward some countermeasures of asset prices. it mainly divides into two aspects: control the liquidity from the source and improve the efficiency of financial assets.