"Liquidity Trap" And Analysis Of China Economics

In 1930s, Keynesians proposed the theory of"liquidity trap"according to the economic state of America in the economic crisis time. This is the first elaboration of the theory in the economical educational world. The description of the"liquidity trap"is not only one of the most famous Innovation, but also a Classical Concept of the Macroeconomics. But after the proposal of the theory, it was only regarded as an economic phenomenon in theory. It didn't draw enough attention until the famous economist"Pul.krugman"Proposed that there was"liquidity trap"in Japan when he analysized and explained the economic recession and economic policy expiration in Japan.The economics of China was in the phenomenon of shrink. in the middle of 1990s. The China government adopted many policy of macroeconomic regulation and control. But such active monetary policy did not make enough effects to the steady development of economics as people imagined. Then many economists discuss whether there had been the situation of"liquidity trap"in China. People has always been paying high attention to the subject, but there is on final conclusion. There are two different sujestions. Some people agreed that there was"liquidity trap"in China, the others denied the viewpoint.Clearing the history is useful for us to manipulate the future, although China has Got rid of the economy withers and steped onto the path of normal development. The analysis whether there was"liquidity trap"in China is a practice examination of Keynesism and also an extention and supplement of its theory system. Meanwhile, it can Confirm the suitable degree of Keynesism even the Western economics in the economic construction of China. It is also useful for us to Know the rule of market economy. The most important, the clearance of the subject can be a theory basis for us to etablish and Execute the monetary policies. So it has a great Significance in the aspect of forming the economy theory which conforms national condition.The thesis is founded on the theoretical analysis, inspects the accuracy and the usability of the"liquidity trap"from the angle of logic analysis. There are two problems to solve, one is whether there are"liquidity trap"in China, the other is whether China is under the condition of"liquidity trap"during late 1990s.The thesis is divided into 6 parts. The first part is the introduction. It consists of the theory significance and practical value of the research work. Ect.The second part is the thorough research of the definition on"liquidity trap". I mainly recalled and studied many different definitions of"liquidity trap"made by economical educational world, concluding Keynesians'generalized definition and Paul. Krugman's narrow sense definition. From the comparation, we can find that the former had the limitation on s pace and time, the latter is more suitable to analysize the m odern economy especialy the prensent development of China. This part is the basemeng of the follow text.The third part interprets the relations between the China economy and the"liquidity trap". It is also divided into two parts. One is the situation of macroscopic economy, the other is the public predict.The forth part try to explate that there was no"liquidity trap"in China at that time from the angle of real diagnosis analysis. This part uses some data and targets of revolution of economy of China in that time.This part used some important present data of China.The fifth part is the end of the thesis.In this part,I draw three conclusions.The first one says that there was no"Liquidity trap"in the late 1990s in China;The second one says that we can not get the conclusion that there was"Liquidity trap"from the low effect of monetary policy;The third one says we should pay high attention to the low development of economics. About the means of study ,the thesis is under the conduction of Maxism, following the line of practising first. It research the economics of China basing on the real data, so the theory is more direct-viewing.