The study on the liquidity trap in China's money market
This study aims to identify the liquidity trap and indicate the factors that affect money liquidity in China. A liquidity trap is an economical issue which is faced by lots of developed countries when their economy has achieved a certain stage of development, such as Japan, America and Europe. Howev...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English English |
| Published: |
Universiti Malaysia Sabah
2020
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| Subjects: | |
| Online Access: | https://eprints.ums.edu.my/id/eprint/27179/1/The%20study%20on%20the%20liquidity%20trap%20in%20China%27s%20money%20market%20abstract.pdf https://eprints.ums.edu.my/id/eprint/27179/2/The%20study%20on%20the%20liquidity%20trap%20in%20China%27s%20money%20market.pdf https://eprints.ums.edu.my/id/eprint/27179/ https://jurcon.ums.edu.my/ojums/index.php/mjbe/article/view/2566 |
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| Summary: | This study aims to identify the liquidity trap and indicate the factors that affect money liquidity in China. A liquidity trap is an economical issue which is faced by lots of developed countries when their economy has achieved a certain stage of development, such as Japan, America and Europe. However, China as the fastest-growing developing country, some scholars suggested that its economy has also being trapped in a liquidity trap. Thus, to verify this opinion, monthly data of several important economic indexes were selected through a series of econometric process to indicate two major findings. First, the economy of China has not fallen into a liquidity trap. Besides, the interest rate and real estate price had a negative impact on the liquidity of money in China while the development of the financial industry had a positive contribution. |
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