Chinese Macroliquidity System and Comprehensive Liquidity Index
- 10.2991/assehr.k.211209.348How to use a DOI?
- Macroliquidity; liquidity index; economic index; monetary policy; standardization; quantile normalization method
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.
- © 2021 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
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 -