Journal of Finance and Accounting
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Journal of Finance and Accounting. 2017, 5(2), 31-39
DOI: 10.12691/jfa-5-2-1
Open AccessArticle

The Impact of Currency Liquidity Excess on Price Volatility in the Future Market

Chen Zhu1 and Liping Chen2,

1Business School of Nanjing Normal University

2School of Foreign Languages and Cultures, Nanjing Normal University

Pub. Date: April 14, 2017

Cite this paper:
Chen Zhu and Liping Chen. The Impact of Currency Liquidity Excess on Price Volatility in the Future Market. Journal of Finance and Accounting. 2017; 5(2):31-39. doi: 10.12691/jfa-5-2-1

Abstract

The main contribution of this paper is to identify the relationship between liquidity excess and futures copper price in developing countries. To this end, we compare various measures of liquidity excess and identify one that can measure the degree of liquidity excess and which is particularly applicable to developing countries like China. Through multiple regression analysis, it is found that liquidity excess accounts for the changes of copper prices in the future market.

Keywords:
liquidity excess futures copper prices

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