Research On The Formation Mechanism And Governance Of Currency Crisis Based On Currency Mismatch

With the development of economic globalization and financial globalization,currency mismatch is a common problem in the world today.But a massive currency mismatch affects the stability of a country’s financial system,the effectiveness of monetary policy and exchange rate policy of flexibility,at the same time,it will also effects on the input and output,etc.Since the 1990 s,many countries broke out currency crisis.It seriously influence the stability of the world’s financial markets,and these countries have seriously currency mismatch during the financial crisis.With the development of financial globalization,the relationship between the domestic economic environment and the international financial environment will be more closely.It will further strengthen the global commodity market and capital market.Currency crisis spread in the international will be easier and less controllable.China is an important part of the world economy,will be inevitably influenced by the international financial market and other countries.In particular,the severe super-sense of the broad money(M2)will be more significant and more harmful.This paper studies the currency crisis from the perspective of currency mismatch based on the characteristics of currency mismatch.This paper studies the formation mechanism and governance strategy of currency mismatch based on currency mismatch theory and currency crisis theory.First of all,we analyze the reasons of the currency mismatch.The reasons of currency mismatches are various,including the incomplete financial markets,the national economic policy is not sound,and the economic globalization,etc.Then we discuss the formation mechanism of currency crisis.Currency mismatch will bring disadvantages to monetary policy,fiscal policy,and international balance of payments at the macro level.At the micro level,it will affect input and output and other financial institutions.As a result,the currency crisis was triggered.Next,this paper expounds the measure index of the currency mismatch.We choose AECM analyze the degree of currency mismatch in China.We use the structural dynamic factor model and build the theoretical model of currency mismatch shock.We empirically analyze currency mismatches and currency crises and find that the seriously currency mismatches can affect the currency crisis.Finally,according to the research achievements of the full text,we propose suggestions in terms of adjusting economic development strategies,strengthening the management of reserve assets,and accelerating regional monetary cooperation to solve currency mismatch and currency crisis.