Study On Relationship Between Inflation And Residents' Financial Assets Structure

Residents'financial assets refer to the assets of the financial residents'right held by the residents and credence of rights and interests nature, which is an important part of a nation's financial assets. The amount and structure of residents'financial assets, to a greater extent, reflects the degree of a country's economic finance. The structure of residents'financial assets is the proportion of residents'financial assets. With the development of economy,residents financial assets are more and more important. The diversification of residents'financial assets can maximize their income, and simultaneously accelerate the harmonious development of national economy. In the developed countries, the proportion of financial capital gains has reached 30% to 40%. But in our country the situation is not very well. Therefore,many experts and scholars from home and abroad have been getting involved in studying on this subject.Capital accumulation is the main driving force of economic growth. Financial assets are the key to capital formation. While the coordinated development between the structure of financial assets and the real economy will directly decide the allocation efficiency of financial resources on economic growth and the extent of financial contributions. There are many factors that affect the structure of financial assets. A sudden inflation happened in 2007, this paper selects the impact of inflation factors as the breakthrough point. It studies the correlation between inflation and structure of residents'financial assets and finds the suggestion on how to optimize the structure of residents'financial assets.This article is divided into four parts.The first part is a brief overview of the related concepts of financial assets; the important role total residents'financial assets and the structure of it play and research significance, allocation theory and development of residents'financial assets (including portfolio theory, the saving theory and so on).The second part is the development and current status of China's residents'financial assets. A serious inflation took place from 1993 to 1996. There for the part analyses the change of residents'financial assets during this period, which is the base of analysis following. Then it investigates the wide range of trend by horizontal and vertical comparison. This section based mainly on qualitative analysis.The third part is the focus of this article. On the basic of analysis above, the paper makes comparative studies on inflation and residents'financial assets. The paper uses the theory of co-integration and Granger analysis. The test result shows that there is a long-term stability correlation between inflation and residents'financial assets. However, the causal relationship is not significant. The result is different from the previous prediction. Then the paper analyses the reasons for the result and reveals a number of institutional deficiencies.The last part is the suggestion. The suggestions are made mainly from the institutional, policy and personal to optimize the structure of residents'financial assets.