The Research On China’s Macro Liquidity Measure

This paper comprehensively deciphers diverse explanations for liquidity concept andmeasure index of domestic and foreign scholars. Based on comprehensive analysis onexisting liquidity measures of all levels, using transfer function model TFM underregression model, and according to Real Money Gap (RMG) theory suggested byEuropean central bank, improve relevant measure index and strive to get a moresuitable liquidity measures.The paper is divided into three sections: first is the part of introduction, mainlyintroduced research background, meaning, references, paper frame and innovativepoints; the second part gets into by concept of liquidity. Summarize the analysis bydomestic and overseas scholars for reasons of liquidity anomalies in different levels,and then elaborate the researches for liquidity measure index, which providetheoretical foundation for multi-layer analysis and understanding liquidity; the thirdpart directs at the relatively defective macro liquidity measures, according to relevanttheory TFM model to construct a new macro liquidity measure model. And test theeffects of the model. Use this model to analyze China’s liquidity conditions.Real Money Gap as a theoretical perspective, starting from the money supply anddemand relationship, designed an index of excess liquidity, normal or shortage criteria,and as a basis to explore macroliquidity levels and operating rules. The empiricalanalysis shows that the measure operable.