The Causes And Countermeasures Of Surplus Of Liquidity In Japan And India And Its Enlightenment To China

There was a surplus of liquidity in Japan in the latter half of the 1980's Japan's adopted conventional monetary policy to deal with t liquidity surplus and got a poor effect. After that, Japan take measures to encourage foreign investment and make yen internationalized which, to some extent, ease the situation of excess liquidity.There were also a surplus of liquidity in India in the latter half of 1990's India implemented appropriate financial reform, modify the monetary policy framework and got a better effect. China is basically in a state of tight liquidity, but the complexity of the economic environment at home and abroad makes our country still face the risk of excess liquidity. Moreover, China ,Japan and India have a lot in common in excess liquidity .China should draw lessons from Japan and India in addressing the problem of excess liquidity and strengthen supervision and management to control excess liquidity. Combined with China's own characteristicsThe full text is divided into four parts, each part of the main contents are as follows: In the first part, the author analyses the basic theory, concept, content, causes and measure of the excess liquidity.In the second part, the author analyses the causes of the Japanese excess liquidity and the solution to excess liquidity.In the third part, the author analyses the causes of the Indian excess liquidity and the solution to excess liquidity.In the fourth Part, the author focuses mainly on the lessons of experience from Japan and India in addressing the problem of excess liquidity .the author give recommendations :China should take measures to adjust the internal economic structure ,stimulate domestic demand and lower the savings rate ;china should also improve the financial market system, improve the RMB exchange rate formation mechanism, and promote foreign exchange management system; china should also improve operating mechanism of the foreign exchange investment company and provide some new ideas for the government to deal with excess liquidity .