The Study On Transmission Mechanism Of International Financial Crisis

The fundamental characters for world economy at the beginning of the 21th century are financial liberalization, trade liberalization and integration of the world economy.People are surferring international financial crisis' trials while they enjoy the benefits to the full which be given by economic globalization. Since 1990,the frequency and force of international financial crisis has kept rising.lt is becoming more serious with World Economy. Before 1997, the financial crisis seemd far from us. We had been going through a period in which the economy was developing with a high speed, and this situation had been called "Asian miracle" at once. But after financial crisis in Asia was taken place, our country pays great attention to the research of international finance crisis.In the era of the globalization of financial market, the internatinal transfer of financial crisis cannot be ignored .With the economic ties between countries have become ever stronger, it is takes on high correlation in financial markets of linked countries. International financial crisis can transmitted from one country to another country. This phenomenon is identified as financial transmission.The transmission mechanism of international financial crisis involves nearly every aspect of social life,such as finance system, investment and consumption, the real economy sectors,the social credit and so on.lt is a unified effect viewed in various ways.This paper relies on traditional theory and methods of transmission mechanism in international finance crisis, and refreshes the theory and models of international finance crisis systemly, then analyzes the impact factor of transmission mechanism under open economy condition further. This page uses methods of econometric analysis and emphases to set out from the model.Through quantitatively analysing the transmiss effects and canals, it lays a good foundation for comprehending the conduct mechanism of transmission mechanism in international finance crisis. Benefiting from research in formation mechanism and transmission mechanism of financial crisis,this article divides the transmission mechanism into contact mechanism and uncontact mechanism. Based on this,it studies the transmission canal carefully,such as international trade,international capital flows,market expection,finance infection ,Monsoonal Effects and so on. And I positively dissects the five international finance crisises of 1990's. Through analysising these international finance crisises wo can draw a series conclusions: Not ohly are they different in background, scope and damage, they are also in different stage of development. And because of the decision-making for some major countries is divergent, the measures and effectiveness to deal with crisises are inconsistency. From this five international finance crisises we can see , both the developing countries in which the economic foundations are bad and developments are unstable and the developed countries in which the economic strength are strong and the financial systems are complete,however,have the possibility to face finance crisise. The difference among them is induced factors. Finally on the base of theories and corresponding countermeasures,this paper uses the inspiration of guard based on research of transmission mechanism and links with financial risks China is facing in order to investigate the measures,which can ensure Chinese finance stability and guard against financial risks against such background that finance crisises are happening and transmissing with increasing frequency. This paper did some contribution to study with transmission mechanism in international finance crisis from theory and positivism. It also wants to find a indicator system to warn the crisis effectly. However, because of the limited time and energy, I have not finished a complete bid, so I wish I can make further researches later.