The Research Of Excess Liquidity Effect On Asset Price In Our Country

Since 2005, the issue of monetary liquidity has been concerned by domestic scholars and experts. China's existing excess liquidity and asset prices rising, especially the real estate price become the two main economic focus. Currency expected ample liquidity to a certain extent, will cause the prices of financial assets fluctuation. And the large fluctuations in asset prices will affect the effective transmission of monetary policy and investors of asset allocation. Therefore, the money liquidity of the impact of asset prices is not only the implementation of monetary policy, the vast number of investors is also the focus of attention problems. Then on the impact of excess liquidity on asset prices has great practical significance on China's economy.In this paper, the methods of theoretical study and demonstration analysis are combined. First of all, this paper makes a comprehensive carding on the meaning of monetary liquidity and excess liquidity, a summary of monetary liquidity on the impact of asset prices, a theoretical analysis excess liquidity how to influence asset prices using IS-LM model, and provdes a theoretical reference for the implementation of monetary policy and the assets choose of investors. Secondly, on the basis of a realistic study on China's excess liquidity and asset prices, this paper obtain the impact of the excess liquidity on real estate price and stock prices by the use of empirical analysis. And then we obtain the conclusion that excess liquidity is a necessary condition of asset prices (especially the real estate) rapid rising. Finally, this paper makes relevant policy recommendations through the conclusion of the study's analysis and China's status.