Wen Yixian. Dynamic Relationship Between Current Liquidity and Inflation Based on the State Space Model. Dynamic Systems and Applications 29 (2020) No. 5, 2117 – 2123

https://doi.org/10.46719/dsa202029546

ABSTRACT.
State Space Model is the traditional economic system is continuously evolving, and the risk is trapped in the state space model. The function of the expansion focus is to avoid the error “liquidity” money-related arrangement, primitive liquidity traps. Many business analysts avoid focusing on positive inflammation, even when the risk is low. The concentrate on being able to do this. In this method, we examine the short-term apparent borrowing cost of zero financings, and under the favorable structure of the bank sector simple quadratic specialized expansion edition, we find that the term is brought about by long – term sustainable expansion. The purpose of the investigation is from the delivery of the liquidity trap. We have proven that the existence of an inflation trap has a slightly but beneficial effect on the presence of an inflation buffer. We also show that the detailed sound assessment of the unfortunate work of theBank sector is the descending, inclining capacity of the expansion target. Finally, these analytical features of the expansion target were verified by numerical methods. Despite the macroeconomic changes, because of the monetary trap, the private sector should Liquidity consider the for real expansion goals.

Keywords: Liquidity, State Space Model, State-Space Representations of Transfer Function.