China’s Economic Policy With The Response To The Effectiveness Of The Excess Liquidity Analysis

In recent years, the global economy appears more serious excess liquidity, and China is no exception. To address the excess liquidity, the central bank repeatedly raised the statutory deposit reserve ratio, the issue of central bank bills, higher interest rates and lower interest tax, but the frequent introduction of monetary policy on the economy does not seem to play a significant regulatory effect. China’s international balance of payments surplus continued in the stability of the exchange rate system under the premise that the central bank led to write-off to put a lot of base money, the money supply increases. With2008global financial crisis, the global economy into a weak, governments have to cut interest rates, inject real economy, increasing the allocation of liquidity, excess liquidity has become the countries most concern and the urgent need to address the problem.Practice to control the excess liquidity in China, Chinese economists have come to realize that close to the single monetary policy can not achieve the policy, in order to recover the excess liquidity and prevent the overheating of China’s economy, the Chinese government has taken a variety of with economic policy to regulation, including the central bank raised the deposit reserve frequent monetary policy and loose fiscal policy, exchange rate policy and international capital flows adjust policy.However, these macro-control economic policy with the governance of China’s excess liquidity is valid, it remains to be Chinese scholars to further research and demonstration, this article only do some attempts of research. Comb scholars with the theory for the governance of the economic policy of the excess liquidity in the results of previous studies based on the combination of qualitative analysis and quantitative analysis, focus on the theoretical and practical combination of the use of econometric research China’s economic policy with deal with the excess liquidity in the validity of the empirical analysis, come to China’s economic policy mix to deal with the excess liquidity effect is not very significant. Then we analyzed a valid reason for China’s economic policy with the governance of excess liquidity weak, and Japan in the governance of the excess liquidity measures and economic policy mix, finally proposed to deal with the excess liquidity in China’s economic policy mix to improve and should fully with the use of the various policies, each policy tools are applied to the policy objectives that it can have the greatest performance, according to the reality of the economic conditions change in a timely manner on China’s monetary policy, fiscal policy, exchange rate policy and international capital flows adjust policy.