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Web of Proceedings - Francis Academic Press
Web of Proceedings - Francis Academic Press

Statistical Research on the Interaction between China's Financial Cycle and Economic Cycle

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DOI: 10.25236/mfssr.2019.120


Chen Yao

Corresponding Author

Chen Yao


With the deepening of economic globalization, cross-border activities in the financial sector have developed rapidly, and monetary policies and financial transactions in various countries have continued to penetrate and expand, and financial globalization has gradually taken shape. Financial globalization has brought financial development to countries, but the financial risks associated with it have spread rapidly. Under the background of currency globalization, China's financial industry is facing increasing risks. Under the condition of information asymmetry, the role of financial accelerators will expand the role of financial factors in the entire economy. Therefore, considering the actual economic cycle (RBC) theory of production and employment, it has not been able to solve the deep structural problems that China faces. The Chinese central bank first proposed the term “financial cycle” in the monetary policy implementation report for the third quarter of 2017, prompting the international community to pay more attention to changes in the financial cycle and to adopt a macro-prudential policy response. Sexual exploration and research provide new ideas for the sustainable development of China's economy.


Financial Cycle, Economic Cycle, Frequency Domain Analysis Method