| Along with the proceeding of economic globalization, the wider financial crises break out repeatedly, since 80's in 20 Centuries. Through the characters of the liquidity embodied by these crises, we could know, even with excess liquidity at the beginning, the liquidity of one financial market may disappear in short time. Then it could spark volatility in whole financial markets, transfer in the financial market and financial institutions, bring the serious injury to the global financial markets and economy. The phenomenon is called "Liquidity Black Holes".So this paper chooses the extremes of crisis "Liquidity Black Holes" as the object of study. By analyzing on the background, process and characteristics of typical cases, which are chosen around the world, this paper initially obtain the triggering factors of "Liquidity Black Holes", which are the inflation caused by excessive liquidity, entering of a large flood of speculative money, happening of the sudden incidents which could unify the market expectations and the impertinent policy replying by the government. In addition, according to characteristics of the financial market, this article gets the conclusion that the reduction in market diversity is the fundamental cause of the "Liquidity Black Holes", and convergence of market expectations is driving factor of it. This result shows that in the normal times of market functioning, the effect of market expectation is insignificant, but in the time of crisis, the same market expectations reduce the market liquidity and market transaction.In the last part, this paper measures and analyzes the liquidity situation of China. The related statistics show that Chinese economy has excess liquidity currently. Therefore China's current policy should focus on reducing excess liquidity and preventing the outbreak of "Liquidity Black Holes". According to the above findings, this article gives some policy recommendations to improve the liquidity and to ease the "Liquidity Black Holes". |
