| In recent years,my country’s stock market has played an increasingly important role in the rational and effective allocation of resources and the realization of financial integration.The stable operation of the stock market is related to the healthy development of the capital market and the macro economy.The research and analysis of stock market fluctuations have been paid more and more attention by domestic and foreign experts and scholars.Monetary liquidity is an important channel and tool for regulating the operation of the macro economy.The central bank achieves a balance between the supply and demand of social capital by adjusting the money supply.Increases and decreases in capital flows also have knock-on effects on stock market volatility.Scholars at home and abroad have conducted extensive research on the relationship between currency liquidity and stock market volatility.Previous studies have mainly focused on the impact of monetary policy on stock prices,but less on the impact of monetary liquidity on the volatility of stock market liquidity.This article will conduct a comprehensive analysis of the impact of currency liquidity on the two dimensions of stock price and stock liquidity.The research objects of this paper are currency liquidity and stock market volatility,in which stock market volatility is developed from two aspects:stock price and stock market liquidity.This paper firstly analyzes the influence of money supply on stock price and stock liquidity volatility,establishes a VAR model of the influence of money supply growth on stock price and liquidity in the empirical analysis,and analyzes the impulse response function.,Grange causality test,variance decomposition.Through theoretical and empirical analysis,it is found that the increase of money supply M1 and the money supply speed scissors difference have a positive impact on stock market liquidity,and the duration is long;the increase of money supply M2 has a certain negative reaction to stock market liquidity in the early stage.But the impact was short-lived,and then the negative response diminished and eventually turned positive.Ml,M2,and the money supply velocity scissors are all Granger causes of stock market liquidity changes.The money supply of different currency levels has different effects on stock prices.Among them,the growth rate of M1 has a negative response to the stock market earnings index,showing an upward trend;while the impact of M2 on stock market earnings has a positive growth trend in the later period.The impact gradually weakened,turned negative around the twelfth period and continued to intensify.The negative impact of the scissors difference in the growth of money supply on the profitability of the stock market is on the rise,and it tends to be flat in the later period.The money supply growth indicator is not a Granger cause of stock price volatility.Finally,according to the quantitative empirical results,relevant suggestions are put forward from the aspects that the formulation of monetary policy should attach great importance to the liquidity of the capital market,improve the efficiency of capital circulation,optimize and improve the investment strategy,and promote the stable development of finance.We will comprehensively promote the reform of the stock market and further enhance the intrinsic value of the stocks of listed companies.policy suggestion. |
