Auditted interest rate hikes may cause liquidity crisis
September 14, 2022 09:27 Source: "China Social Sciences" September 14, 2022 Total 2491 Author: Lianzhi Leisure/Compilation

  bet365 Play online games Research Report "Bank of Fund Restrictions and Stock Llerance" written by Xie Ru Xie, an associate professor of Financial University of Bashe University of Basin University of Management, was published in "European Financial Magazine"。Report Digital,To cope with the spiral booming inflation,The central banks of many countries are raising interest rates,This may cause liquidity crisis、High volatility and global stock market decline。

2003 —— The relevant research results of the global financial crisis in 2003 showed that,The uncertainty determined by the central bank's policy has adversely affected market liquidity。Report author thinks,The global financial crisis clearly indicates,Increasing financing costs and changes in market liquidity may cause the stock market to fail。Excessive financing spread will damage market liquidity,So as to exacerbate asset price fluctuations and Bet365 lotto review uncertainty of the stock market。Xie Ru said,During the financial crisis and the market full of uncertainty,Investors are worried about fluctuations in future asset prices,The funds will be transferred to the place where they think is safe。This may lead to a serious shortage of liquidity,This forced banks and financial companies to sell a large number of securities to meet increasing liquidity requirements,And this in turn has lowered the stock price of the financial industry。

Research Discovery,Active and prudent macroeconomic policy can play an important role in breaking the vicious bet365 live casino games circle of liquidity crisis。To cope with inflation pressure,Central banks of various countries can gradually tighten monetary policy in a more gradual way。Report author thinks,The key is to find a balance between solving inflation and dangerous liquidity crisis。If the monetary policy and interest rate hike significantly tighten,It will increase the financing cost of financial institutions,and generate a liquidity crisis,This will increase the risk of global economic recession。The central bank is concerned about interest rates and inflation,bet365 best casino games You must also recognize the risk of liquidity crisis。

  (Practicing Zezhi Leisure/Compilation)

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