Chinese Macroliquidity System and Comprehensive Liquidity Index

DOI

10.2991/assehr.k.211209.348How to use a DOI?

Keywords

Macroliquidity; liquidity index; economic index; monetary policy; standardization; quantile normalization method

Abstract

Macroliquidity means the amount of money in the economy which allows the markets function efficiently. It not only reflects the financing difficulty of the enterprise, but also the amount of the supply and demand for funds. In general, it is a pretty important variable to reflect the economic macroscopic environment. Therefore, it is necessary to construct an easy-tracking indicator to reflect the macroliquidity of the whole country. As we all know, until now, there is not a widely recognized and applied index in China to reflect macro liquidity. Most investors or policy makers mainly observe the macroliquidity by detecting and tracking a single index, such as aggregate financing to the real economy, Shanghai Offered Rate (Shibor) and so on. However, tracking just one index is not always reliable or comprehensive. We are pretty curious about whether an overall index could be invented to reflect the macroliquidity as a whole. In order to investigate this topic, to begin with, we understand the process about how the liquidity is generated in China, then we collect different indicators that reflect the liquidity for each stage. The next step is to combine and synthesize these indicators together hierarchically, and finally we construct an index that reflects the macroliquidity in China.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

Download article (PDF)

TY  - CONF
AU  - Wenhao Lai
PY  - 2021
DA  - 2021/12/15
TI  - Chinese Macroliquidity System and Comprehensive Liquidity Index
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 2121
EP  - 2129
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.348
DO  - 10.2991/assehr.k.211209.348
ID  - Lai2021
ER  -