Study Of The Development Of The Financial Framework

Financial activity of humans has existed for a long time, but, since the advent of classical and neo-classcial economy, money, finance, the role of finance and its change doesn't attract much attention. The situation which finance is strongly neglected cannot be changed, even though a few of economists voice differently during the process. In other words, money, finance, the role of finance and the change of finance, to a great extent, have been overlooked, ignored and omitted consciously or unconsciously. Nevertheless, with economic integration, economic financialization and financial globalization gradually booming in the world, the rapidly growing and sharply changing financial facts make people acknowledge that finance has not only become a core of economy, but has shifted from a industrial, passive and micro issue to a key, dominative and strategic one for each country or region in its economic, social development and stability around the world as well. It is not only unfair for contemporary finance, but also a lesson will be taught to humans or people will be punished heavily in the never-happened means before, if humans continue to comprehend and handle finance in a traditional perspective. The consecutive appearing financial crises in the parts of nations and regions around the world are excellent and vivid examples.Chinese scholar Prof Bai Qinxian, based upon the above changing economic and financial facts, not only puts forward the theory of finance sustainable development on the basis of finance as a resource to explain a series of economic and financial crises that western mainstream economics can't at the turn of the 21st century, but recall that it is time for financial development theory to be separated from development economics in different situations recently as well. Simultaneously, Prof Bai (2005) makes a detailed description and conclusion to development finance from a strategically advantageous position, he thinks that development finance is a subject which studies what is finance and the relationship between finance and economics, namely, not only studies the essence of finance and its evolution, but also the development of economics. However, it doesn't separately and simply studies the development of finance and economy respectively, but studies the relationship between finance and economy in the mutual dependence, restriction and influence. It should be interactive to study the development of finance and...