The Inherent Relationship of Financial Development and Financial Innovation with the Volatility of Business Cycle
There is inherent relationship between financial development, financial innovation and the volatility of business cycles. On the one hand, financial development and financial innovation increase the scale and activity of virtual economy, and improve the shortcomings of the financial market, enhance the financial market efficiency and reduce the risk of financial transactions, then reduce the volatility of business cycles consequently. On the other hand, financial development and financial innovations engender inherent financial risks, and increase the volatility of business cycles. We analysis the financial development and financial innovation mechanisms in the volatility of Chinese business cycles, and found that financial development and financial innovation is the important reasons of the stabilization of Chinese economic activity in recent years, we also find that irrationality financial development and financial innovation can cause the big financial crisis all over the world.
financial innovative business cycle volatility stabilization
Yi-ting Fu Han Liu
Management School at Changchun Institute of Technology, Center for Quantitative Economics of Jilin University, Changchun, China
国际会议
第八届武汉电子商务国际会议(The Eighth Wuhan International Conference on E-Business)
武汉
英文
1272-1277
2009-05-30（万方平台首次上网日期，不代表论文的发表时间）