. China's loose financial policy that promoted “cash-richness” must be reexamined as excessive liquidity coexisted with … has long been practiced in China, though financial liberalization since the 1980s has revitalized banks and other … institutions. By using provincial data, this paper attempts to show the relationship between liquidity and productivity in post …

degree of China's excess liquidity based on cross-country regression. Our results show that excess liquidity in China is over … 50 percent of the liquidity implied by cross-country benchmark. Monetary expansion in fact hasn't led to severe inflation …China's M2/GDP ratio keeps rising, although it is already in the highest tier throughout the world. In this paper, we …