Study Of The Conduction Mechanism Of The Financial Crisis

Since the mankind had economic activities, the financial crisis always accompanies with people. Each time it brings the huge breakage to human society. And it seems to be unpredictable, the night before the crisis happen the whole things is calm, but once explosion, the destructive power let the person shaking. In September, 2007, the American subprime crisis breaks out. Later on, the crisis Upgrade to global financial crisis. Seriously affect the U.S. and global investment and consumption growth, resulting in the United States, Europe and all countries and territories worldwide economic recession has also led to the slowdown in world economic growth. During the crisis, many countries and regions around the world have been severely damaged, so the study will focus on the prevention of financial crises. But an effective prevention of financial crises occurred in the country, a necessary condition is sort out the conduction path of international financial crisis. Only by understanding the conduction path of international financial crisis. The development of effective economic policy and the establishment of an effective warning mechanism, the study of financial crisis are focused on the conduction mode of international financial crisis. In this article, an analysis of the main stock market index of the relevant countries and regions around the globe during the crisis, obtained the extent of the crisis conduction. Then causality test results get a direction and path of crisis transmission. And then analyze the cause of the problem.This article is divided into four parts in general. Part I: Through the history and the current financial crisis on the general description of the research background of this article, as well as the need for research. In this paper, introduce the basic research methods and ideas of this article, and the general purpose of the study. Part II: The part of the theoretical basis for this article. On the history of the financial crisis and the relevant theory of financial crisis transmission mechanism, introduced relevant concepts and categories. And the new features of current financial crisis. Part III: An Empirical Study of this article. Through the econometric approach and causal analysis, analyze the capital market data of the countries during the period of current financial crisis. So get the extent of the financial crisis and the conduction path and the direction of conduction. Part IV: make a comprehensive assessment on China economic situation from 2003 to 2007 by use of KLR assessment models, so get the current situation of China's economic and the extent of financial crisis affected. And found the existing problems and potential crises, and then make some suggestions according that.