Financial Risks And Financial Risks In China's Transition Into Each Other

Since the 1980s',the situation of international politics and economy has changed greatly and abruptly, and the bank risk of some countries as well as regional finance crisis frequently happen, which makes the problem of the safety of finance and fiscal draw the attention of countries all over the world. In fact, the practice from this field shows the aggravation of finance risk has some direct or indirect relevance with the debt crisis and the fiscal defray crisis of governments, how strong the fiscal strength of a country is directly decides the capacity of the government to cope with the finance crisis. China is still in the transforming period from the plan economy to the market one. At this period, the former system which suits the plan economy is broken, while new standard and system which is expected to meet the demand of the laws of the market economy is still under construction; the boundary of the rights and responsibilities of governments and those of market is rather indistinct; and the behavior of governments is still not normalized. This special national condition decides that the finance risk and the fiscal risk of the country are highly relevant, and impossible to be cut apart. For this reason, it is of great significance to deeply analyze the cause of the mutual conversion of the finance risk and the fiscal one, to analyze the costs and benefits of this kind of conversion and to explore the reasonable division of the boundary during the process of it.The dissertation is divided into four parts as follows:Introduction: the explanation of the research background and significance, the relevant theory, the research literature summary, the outline, innovation places and the research method of the dissertation.The first part is to generally investigate the mutual conversion of the fiscal risk and the finance one. It starts from the explanation of the definition and the connotation of the fiscal and finance risk, then respectively analyzes the producing mechanism of them, while thinking that the mechanism has both the similarity of all and uniqueness of China. This part also analyzes the cause of the mutual conversion of the two kinds of risks based on the analysis of the ways and the manifestation of it, while thinking that the ultimate cause is the operation of the unity of the two opposites and the existence of the paragenesis relations between them. Besides, this part supposes that the decisive cause of the conversion lies in the complex relationship between fiscal, finance and enterprises produced by the dominant position of the state-owned economy; the transforming costs which consists of the expense for the solvation of the remained problem of the former system and the payment for the new one; and the indistinctness of the functions of governments during the transforming period.The second part is a theoretical analysis of the conversion from the fiscal risk to the finance one during China's transforming period. Starting from the capital difficulty of the public economic departments caused by the transform of the economy, it analyzes the reasons why the difficulty arises, the historical inevitability and rationality of raising capital through the financial way in the condition of the collapsing of the latent taxation mechanism and the increasing of financial surplus of resident departments. It concludes that it is a reasonable measure to make fiscal risk convert to finance one, considering the available choices of policies which can meet the aims to the government within the limitation of the original conditions of China at that time, and that this fashion of conversion brings tremendous harm to the society. The third part is a theoretical analysis of the conversion from finance risk to fiscal one. It analyzes the necessity of helping the financial departments by the fiscal ones based on the theory of economics from the perspective of history, the finance risk-sharing and the public responsibility of the government, reaches the conclusion that it is reasonable and evitable o make finance risk convert to fiscal one during transforming period of China, and analyzes the costs and benefits of removing finance risk by the fiscal way.The fourth part is an analysis of the effects of the mutual conversion of finance risk and fiscal one during the transforming period by the method of cost-benefit. In this part, the dissertation sets up a model of the mutual conversion of the two risks, analyzes the reasonable boundary of them, and also gives some advices for the effective control of the conversion.