External Capital Liquidity Shock On China's Economic Fluctuations

Beginning in 1978, since the reform and open policy, the economy keeps the annual average nearly 10% of high growth. Such high, long-term economic growth in the rest of the world is rare. Compared with high economic growth phase, Chinese macroeconomic can not be ignored. China's GDP sometimes have a high growth of more than 15%, and low while only 3.8%, inflation is high but also in up to 25%. On the other hand, along with international trade and international capital flows in accelerating the development, external capital liquidity fluctuation on the effect of internal economy become increasingly significant. External liquidity shock how on earth, how to measure, how to form the transmission? How is the depth and breadth of China economic fluctuations of the influence? This is worthy of thinking, also worthy of study.This paper first reviews the dynamic random general equilibrium theory development in the second chapter. In the third chapter using theory and the empirical research of the method of combining external liquidity impact and its transmission mechanism is analyzed and discussed, it is believed, external liquidity to the fluctuation of the economic impact depends on the operation of the runoff in economies internal characteristic as well as the monetary authorities camera decision-making system. In the fourth chapter, established on the basis of the established with external liquidity of the impact of the financial accelerator with the price of the viscosity dynamic stochastic general equilibrium models, from result of the model, current external liquidity impact on economic growth in China will produce negative influence. Based on the discussion of the front, this paper put forward some opinions on the aspect of monetary policy in the fifth chapter.