| Over the past two decades,there is a phenomenon worthy of noting appears in the economic and financial fields in the developed countries.That is the reverse trend between general price and assets price,(investment) and credit.Coincidentally,this phenomenon exists in China too.This contradictory situation seems to prompt that the present Inflation Targeting System(or more generalized money supply system) doesn't do very well in restraining the bubbles and credit expansion,even though it is effective to control inflation.Therefore,this system can not effectively ensure the smooth running of the economy.For the reason of this phenomenon,some scholars think it is because three reforms have happened over the past several decades.This article thinks it is too general.We think that this phenomenon has a close relationship with the "financial accelerator" mechanism brought forward by Bernanke.B.S,M.Gertler and S.Gilchrist.The "financial accelerator" causes the pro-cyclicality of banking credit by reacting in two respects:demand and supply respects of banking credit.In addition,It also relates with the misreading of the character of the money demand required by fictitious economy which is hold by academic and practiced fields.When bubbles appear,this misreading causes that the risk undertook by the investors become lower (for example,the leverage rate doesn't adapt in time).Then it will cause over-demand of assets and finally promote the gyroidal expansion of bubbles and credit.For this,this article will analyze this phenomenon from two respects:"financial accelerator" and financing through the cycles and bubbles.At the same time,this article offers a demonstration and academic analysis for the relationship between stock market,real estate market and money demand.Under this analysis,we offer some policy suggestions at the end of this article.We hope that,this article can make some contribution for the solution of the problems mentioned in the article. |
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