Based On The Keynesian Money Demand Theory Of Liquidity Excess

According to the situation of our current real economy and the virtual economy context, China takes on the excess liquidity indeed, excess liquidity in the real economy mainly showed as a lot of liquidity in the banking, and this surplus is a kind of money stock surplus and this kind of surplus mainly showed as the distance between in the savings and the expanding are becoming bigger than before. As for the excess liquidity in the virtual economy, it mainly reflected in China's financial markets, such as the rapid rise in house prices and the instability of the stock prices.The problem of excess liquidity has been always a hot topic in economics fields, and many countries had made lots of research on this subject. On the background of global and China's excess liquidity, the research on the excess liquidity sets off a new wave in worldwide economics. The study of this paper on the excess liquidity is based on the Keynesians monetary demand theory, because the phenomenon of excess liquidity is a kind of monetary phenomenon in some extent, from the perspective of external factors, the main factors affecting excess liquidity is the transmission of excess liquidity of the world and the foreign hot money speculation behavior increasing frequency. As for the internal factor, the performance of the excess liquidity showed as the money supply is increasing, and household savings is tending to rise but effective demand of the currency is relatively insufficient. In addition, excess liquidity in China takes on the characteristics which the structure is not balanced. Sufficient liquidity could provide a strong driving force for economic development, however, if the excess liquidity occurs continually, it will generate an enormous potential risks for economic development, such as the currency inflation, the distortion of economic structure and the imbalances of the regional economic development. Therefore, how to control the liquidity within a reasonable range is necessary. We need to set out a series of related policies and measure, so as to ensure the sustainable development of our country's economic.