Research On The Linkage Mechanism Of Sino-us Repeated Reversal Of Liquidity

The change of liquidity is a hot issue after subprime mortgage crisis. From early2007tolate2010, just four years, our liquidity has interpreted a complete cycle of fluctuations: fromsurplus to shortage, then from shortage to surplus. But this change of liquidity is traced passivelyby the change of American liquidity. The reversal appears twice in such a short period of time,this is the first time in the history of China’s economic development, so this phenomenon isdefined as the repeated reversal of liquidity. In view of the increase in Sino-US trade daily in thecontext of globalization, it is necessary to research the specific mechanism, the spread path aboutcorrelation diffusion, the inertia overflow channel and impact effect of bailout policy on thechange of liquidity of Sino-US.Based on the literature research at home and abroad, this paper starts from the relatedconcepts of liquidity, then extends the repeated reversal of liquidity phenomenon, finallyresearches the related theories of repeated reversal of liquidity from the conduction mechanismsof the international financial crisis and the monetary policy transmission mechanism of thespillover effect two angles, and this paper makes a elaborate explanation on the conduction pathof international financial crisis and monetary policy spillover effect. It provides a goodfoundation of the basic theory for the follow-up mechanism research.This thesis is based on theoretical analysis and empirical method, starting from the point ofthe two countries, in accordance with the time sequence of the evolution of the financial crisis,making a mechanism research about the liquidity repeated reversal phenomenon which is splitinto the first reversed and re-reversed two stages. Firstly, we make a elaborate explanation aboutthe first reversal of the associated diffusion mechanism from the following four aspects: thechange of liquidity of Sino-US in the evolution of the crisis, the associated diffusion path of theconduction of liquidity, the associated diffusion net, the empirical analysis. Then we make acareful analyzation about the second reversal of the spillover effects of U.S. bailout policy fromthe following four aspects: China and the U.S. rescue package, the spillover effects of the U.S.bailout policy spillover effects, the bailout policies spillover effects network, empirical research.Detailed analysis of the results from the two parts, we can see the change of liquidity in China istriggered by the change of liquidity has also changed in America.This paper bases on the linkage mechanism of repeat reverse of liquidity, contacting theactual economic operation situation cleverly, and make an explanation of the follow-up development of repeat reverse of liquidity from the following two aspects: the U.S. debt crisisand local debt crisis. Based on the massive liquidity injection, the liquidity happened the secondreverse, but the stopgap bailout policies leaving a lot of hidden problems for China and theUnited States, and the debt crisis is the inevitable result of problems after exposure to. Relyingon the repeated reversal linkage mechanism of liquidity, this paper explores the coping strategiessuited to China’s national conditions, can effectively run on the domestic economy againstexternal liquidity risk disruption.