The study on the liquidity trap in China's money market

Caroline Geetha and Soon, Lin Fei (2020) The study on the liquidity trap in China's money market. Malaysian Journal Of Business And Economics, 7 (1). pp. 75-83. ISSN 2289-6856

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Abstract

This study aims to identify the liquidity trap and indicate the factors that affect money liquidity in China. A liquidity trap is an economical issue which is faced by lots of developed countries when their economy has achieved a certain stage of development, such as Japan, America and Europe. However, China as the fastest-growing developing country, some scholars suggested that its economy has also being trapped in a liquidity trap. Thus, to verify this opinion, monthly data of several important economic indexes were selected through a series of econometric process to indicate two major findings. First, the economy of China has not fallen into a liquidity trap. Besides, the interest rate and real estate price had a negative impact on the liquidity of money in China while the development of the financial industry had a positive contribution.

Item Type:	Article
Keyword:	Liquidity Trap , Interest Rate Real, Estate Price , Financial Market
Subjects:	H Social Sciences > HB Economic theory. Demography
Department:	FACULTY > Faculty of Business, Economics and Accounting
Depositing User:	NORAINI LABUK -
Date Deposited:	14 Jun 2021 13:14
Last Modified:	14 Jun 2021 13:14
URI:	https://eprints.ums.edu.my/id/eprint/27179

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