Abstract Of Financial Bubble Formation Mechanism And Monitoring And Control System Analysis

The emergence of currency and monetary system, the formation of financial bubblesplanted the formation of the seed, while the micro-economic factors and macroeconomicfactors together and people’s psychological expectations, and various other factors together,the bubble began to form and positive feedback and people’s psychological expectations ofthe role of constant motion, so that bubble to the continuous development until the bubbleburst. Human society in recorded history, the financial bubble has been accompanied byeconomic and social development of mankind, human beings through the economic andsocial development, understanding of the financial bubble are constantly deepened, butfinancial bubbles are still from time to time the formation and rupture, and large or smallimpact on human society.These years as China’s economic development, improvement of people’s livingstandards, as well as the world economic integration process further accelerated, so that wesee a region or a country increasingly cannot simply only the country’s economicdevelopment focus regardless of other factors, single-minded in terms of GDP rough maddevelopment as development goals, any competition is not just a competition of GDP, itincludes a wide range of competition, including resources and cultural, so we tend to juststart from the most basic of GDP, in the development have been ignored in many otherparts of the matching, which can easily lead to economic overheating, resources cannotkeep up the pace of economic development, leading to the financial bubble which led tothe economic crisis. In order to prevent the generation of the country’s financial crisis, thefinancial bubble of the early warning and monitoring is essential, this article attempts tostart from the case history of the financial bubble on the basis of theoretical analysis, tryingto find out the reasons for the formation of financial bubbles, and the driving force behindthe financial bubble, carriers, booster analysis obtained the financial bubble formationmechanism and preliminary analysis of the financial bubble monitoring and controlmechanism, in order to draw some useful understanding of the financial bubble.