Author: workout

What is overliquity? [Copy link] 中文

Rank: 4

Post time 2007-3-27 16:58:52 |Display all floors


Hi Workout,

I presume you have got your answer by now, but just in case you haven't, and to make sure that your positive experience of this forum is not affected by one reply....!!

Over-liquidity refers to an excess of money supply in the economy. (Ceterus Paribus - all things equal- that would tend to lead to an increase in  inflation).
An excess of liquidity may be caused by excess printing of currency, or by the Central Bank buying up foreign currency (to keep the value of the Yuan from rising) which would increase the amount of domestic currency in the market. Sometimes it is used in the media to refer to an excess of liquidity in a specific segment of the market - for instance excess liquidity in the share market or in the call money market - but ofcourse that is not independent of excess supply in the economy as a whole.
Excess liquidity does not specifically refer to inflow of 'hot money' (hot money being short term capital flows that are liable to quickly reverse, for instance foreign portfolio investment (in the stock market). However an inflow of hot money may contribute to over-liquidity
Hope that makes some sense.

I think over-liquidity or excess liquidity has been  translated as 超额流动资金

[ Last edited by waibeijing at 2007-3-27 05:01 PM ]

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Post time 2007-3-28 09:52:51 |Display all floors
Originally posted by workout at 2007-3-27 15:30

I have to say this is the most tasteless and helpless answer I've ever got here.

you are welcome to explain how the real definition of overliquity reeks of taste, just ignore an attempt at humor if you don't like it

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Post time 2007-3-28 10:16:53 |Display all floors



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