The Research Of The Current Liquidity Problem Of China

September15,2008, Lehman Brothers bankruptcy, as a start, the subprime crisisbroke out, the impact quickly spread to the whole world, for the need to respond to thecrisis, the United States, Europe, Japan and other developed countries as well as China asthe representative of a variety of emerging and developing countries to take urgent andeffective measures to counter-cyclical macroeconomic regulation, such as theimplementation of quantitative easing in the United States began in November2008, hasimplemented three rounds of quantitative easing, although the intention to graduallywithdraw, but still maintaining a considerable scale. European countries are taken torecapitalize banks, announced the country to provide security for all personal bankaccounts and other means to stabilize market confidence. Relative to the United States andEurope, intervention efforts in Japan is relatively small, but it has also taken to injectliquidity into the financial system, and other measures to restrict short. China ’s responseto it are unprecedented,On fiscal policy, launched the " four trillion " investment plan for affordable housing,irrigation, roads and other aspects of railway large-scale investment, improve the exporttax rebate rate, made the top ten industrial revitalization plan. In terms of monetary policythrough open market operations to guide market interest rates down, cut deposit andlending rates and deposit reserve ratio of financial institutions and other measures, to alarge extent, curbed the decline in China ’s economy. In2009a quarter of China’s economyhas rebound is, after economic growth to gradually accelerate until the first quarter of2010, GDP grew11.9%, PPI rose5.2percent, the broad money (M2) grew by22.5%,macroeconomic early noticeable signs of overheating. To control excess liquidity andprevent price hikes, the central bank started to tighten monetary policy. From the beginningof2010raised12consecutive times prospective reserve ratio, from the second half of2010to mid-2011raised the deposit and lending rates five consecutive times, then M1, M2basicsituation of excessive growth is under control, but liquidity there is always a situation ofexcess pressure of rising prices linger. In this case, the paper analyzes the consequences ofthe stimulus policies after the financial crisis, combing the liquidity indicators reflectingeconomies of China’s current level of liquidity to make judgments-think the level ofliquidity in excess, then on the cause of the current excess liquidity in depth and targetedpolicy recommendations.Firstly, the study points out the importance of liquidity problems in the preface, andrelated literature are summarized. The second chapter introduces the basic theory ofmonetary equilibrium, to Keynes, Friedman, from its origins to develop and then further, to do the following chapters discuss the theoretical groundwork from Wicksell to Hayek.The third chapter focuses on exploring measure of liquidity in our approach, screening canaccurately measure liquidity indicators and the indicators of defects in order to investigatethe level of liquidity from multiple angles, the final conclusion-our country is liquiditysurplus state. After the fourth chapter summarizes the economic crisis, the major nationalpolicies and measures, especially in China’s economic stimulus plan, a measure of theeffects of policies and measures to find the cause of the current situation of excess liquidity.The fifth chapter analyzes from multiple perspectives excess liquidity caused by the impacton China’s macro economy, the use of the money supply, a variety of indicators ofinflation, the national real estate length transaction price index, measured using themethod of economic analysis, trying to fully analyze the flow the impact of excess.Chapter VI for the current situation of excess liquidity, excess liquidity and the causes ofthe foregoing, made a variety of excess liquidity to ease policy recommendations,including guided excess liquidity into the real economy investments, interest rates,provide accurate and so on.