The Financial Complexity Of The System Evolution And Financial Development

Along with the social economy modernization, finance is getting more and more complex, becoming the core of modern economy. The traditional finance development perspective tries hard to melt the complexity into the simplicity and forms several representative theories. But it reveals actually the limitation to explain the practice of the modern finance development. In less than 30 years Chinese finance has basically realized the transformation from undeveloped to comparatively developed stage and formed a complex system. But for developed counties it took several hundred years to form their complex financial systems. Therefore, the contradictions in Chinese financial development are more centralized and complex than developed countries. The traditional finance theories have already not been able to explain and instruct Chinese financial practice. The financial development theory needs to be deepened and innovated.The dissertation not only follows the finance comprehensive view advocated by Prof Bai Qinxian, but combines my financial practice experience in the state-owned commercial and central bank in more than ten years as well to propose a complex paradigm to analyze the financial development. The complex paradigm regards the finance as an organic unity, namely financial system, which is composed of such factors as currency, financial tool, person, organization and institution. Along with the economic growth and the social progress driven by the division of labor, the specialization and the accumulation of capital, especially with social economy modernization after Industrial Revolution, financial persons and instruments have been achieving quantity accumulation and quality promotion greatly, and the financial system becomes more and more complex system. According to the complex paradigm, the financial development is the creation and evolution of the financial complex system. The currency, financial tool and financial person are different dimension factors. The financial organization and financial tool, person are different levels of factors. They are all different essentially. Different types of finance tools and different specialized persons are different both in quantity and in quality. The general attributes of the finance complex system, composed of different quality factors, cannot be denoted by a factor. Also we cannot simply put the quantity of the non-homogeneous factors together. So the laws of the...