Research On The Relationship Between Financial Liberalization And Current Account Imbalance: Take The Subprime Mortgage Crisis And The European Debt Crisis As An Example

The outbreak of the 1997 Asian crisis is due to the implementation of financial liberalization in developing countries, contributed to the domestic current account deficit which accelerated the outbreak of the crisis, in 2007 and 2009 outbreak of the subprime mortgage crisis and European debt crisis, the crisis countries also exist serious current account deficit. China's economic strength has been continuously strengthened, liberalization gradually deepened. in this case, relationship between liberalization and the current account in research on the different degree. For China in regulation of macroeconomic factors during the process of liberalization have draw lessons from a meaning.Based on a review of the existing financial crisis model, we found that the outbreak of the financial liberalization can promote a country's crisis, and according to the third generation model of the financial crisis, the financial liberalization is exacerbated by the current account imbalances in developing countries so as to accelerate the outbreak of the crisis, through the analysis of the U.S. subprime mortgage crisis and the European debt crisis found, before the outbreak of the crisis countries current account showing a serious deficit, in order to verify whether the level of financial liberalization can make the financial liberalization have different influence on the current account, based on the data from the United States and the European debt countries, provides a theoretical analysis of the relationship between the current account in developed countries, found that in countries with more perfect development of the financial liberalization, liberalization will have a negative impact on the current account, liberalization will be negative influence on the current account, no matter what level of liberalization countries, liberalization will be a negative impact on the current account. To further demonstrate the reliability of the conclusion, we select the 60 liberalization countries 15 years of panel data empirical research. The test results still support this theoretical viewpoint.Through the analysis of this paper, it is proved that the financial freedom will affect current account universality. Finally, according to the cause analysis of the two crisis and the results from this paper. From the following several aspects, we provides policy suggestions for our country's financial liberalization: financial innovation and financial regulation, improve financial risk early warning system in our country and strengthen international cooperation and so on.