Analysis About Reasons And Policy To Excess Liquidity In Financial System

Excess liquidity is a very serious problem in development of economy in China. There is a lot of debate about the defination, inducement and resolves way of excess liquidity in academia .And the boundary of excess liquidity is a very excessive problems. If you in-depth research the problem will you find it not only is a matter in finance system inner but also relation the change of our country economic development strategy fairly directly.This paper discuss the definition of excess liquidity and what is the boundary about excess liquidity. And it discuss its con-sequences for the development of China. The paper also analyze the reasons conduce excess liquidity in China by data. It find that the high savings ratio of resident , great amount exchange cover , the banking reformation all are direct cause to happen excess liquidity in finance system at present, but exchange rate policy and huge sum trade difference are deep-seated cause then. Through carefully analyse discover the origin insisting that exporting the development strategy replacing is the essential reason of excess liquidity in China. At last, the paper bring out some policy advices to resolve excess liquidity.This paper consist three parts. The first includes the first chapters and second chapters,mainly discuss the definition of excess liquidity and what is its boundary. The second is that third chapters, analyse the causes excess liquidity in finance system by data. The third is fourth chapters,comparison some economic policy adopted by PBC to solve the problem and bring out some policy advices to resolve excess liquidity.