A Study On The Financial Negative Externalities

The topic is to study financial externalities, especially, financial negative externalities from the perspective of fiancial globalization. Around the axis of the financial negative externalities, from various perspectives and levels to study the spillovers of financial activity, especially in the financial cost of overflow problems. Individuals'financial risk-taking behavior may bring about the external effect to macro-economy, and macro-financial policy or financial activities may even bring about international spillover effect. The costs and benefits of the financial organization itself are not equal to the costs and benefits of the society. The external effect of the financial sector is particularly strong after the conduction of macroeconomy.The structure of this dissertation is as follows:Chapter one is an introduction, in which the background, theories and the significance of the topic are presented. The strategic significance of studying Financial Negative Externalities in the global perspective is stressed.Chapter two traces the concepts of externalities,financial externalities from the perspective of econmonics. Drawing on previous research, the author rethinks the motives and the dual effect of financial globlization. The emphasis is placed on the extraction, integration and complement of the externality theory, thereby laying a theoretical foundation for this dissertation.Chapter three explores the essence of financial externalities. The concept and classification of financial externalities are interpreted creatively, and the essence of financial externalities is rethought. The financial externalities is the tension between individual rationality and collective rationality in financial market. Dysfunction resulting from institutional failures in financial market is the essential inducement of the fianancial externalities. Intense fianancial externalities will induce a new financial system. This part also analyzes fianancial threshold, supply issue—the tragedy of fianacial commons in financial quasi-public goods and the financial externalities caused by monopoly trading. This study reveals the coupling of financial negative externalitie and the natural principle. Chapter four integrets and redefines the financial externalities developed from different financial routes. Based on McKinnon and Shaw's financial development theory, this study analyses the financial externalities in financial liberalization of M-S paradigm. This part also rethinks the negative effect of financial positive externalities under financial repression. Policy effect and boder intervention under financial constraints are assessed in terms of cost.A analysis framework of financial negative externalities in the Context of Globalization is constructed in Chapter five. First, from the perspective economic development to Explore the spillover effect of financial globalization on developing countries.It is found that developing countries bear the main spillover costs of financial globalization. And then sort out the micro and macro perspective at all levels of financial externalities, focusing on analysis international financial negative externalities of. the international monetary, exchange rate policy.A dynamic path model, financial innovation—The virtuality of finance—financial negative externalities—financial crisis, is constructed and tested in Chapter six, Approached from the financial crisis on optimal dynamic path model, the financial innovation in financial crisis is set up from a social designer's point of view. The effect of parameter on dynamic path and policy significance are analyzed and inferred the following propositions and conclusions:Financial innovation and financial crisis have both positive correlation and negative correlation; financial negative externalities and financial crisis are interdependent; what is initially a marginal cost in the depth of the financial crisis increases as the time and financial externalities increases. The facts and statistics selected from every crisis support this proposition.Chapter seven probes into the negative externalities of virtual finance. The confusing relationship among virtual economy, finance and virtual finance is defined theoretically. How virtual finance divorces from real economy is studied empirically from the perspective of foreign exchange transactions, stock market, and other derivatives respectively. Currency revaluation in virtual finance is the source power of ego expansion. Real economy is damaged by virtual finance through spillover effect.Chapter eight elaborates the finanacial negative externalities of government action in financial market.It first explains the government action and its externalities from the perspective of economics. The spillover effect of government actions, as represented by exchange rate policy, rent-seeking behavior in financial market and government relief is discussed here, and relevant contermeasures are proposed.Chapter nine investigates the Finanacial Negative Externalities of Real Estate in our country, which is a very sensitive issue at present. The author feels suffocated if she does not speak out. Based on the financial attribute of real estate, this chapter measures and evaluates the real estate foam through a great amount of statistics. The conclusion is drawn as follows:The real estate is neither the pillar industries, nor the wealth effect. Instead, its own economic performance and one-sided development are traded at the cost of the loss in the national economy and social benefits, and the cost of real estate is socialized.Solutions to various financial negative externalities referred in the above chapters are offerred in Chapter ten. The first is to stress the importance of social responsibility and reshape financial and economic ethics. In addition, this part defines the optimal boundary in financial intervention, and suggests changing competition rules in internatioanl monetary reform. Locomotive Theory and Game Theory is used to promot international co-operation. On the current hot issues in international monetary reform his views.This dissatation studies financial externalities, especially, the financial negative externalities from the perspective of interest rate (different financial develoment route), exchange rate, financial innovation, virtual finance, government action in financial market, real estate finance, etc. by means of the economic effect analysis of cost-benefits in financial externalities. It microscopically touches upon the socialization of risk in finacial institutions. It macroscopically explores how some national interest groups utilize financial hegemony to exploite our global financial resources excessively,and how they conduct macro-regulatory policies conducive to their own country. The nature of finance is revealed again as a double-edged sword, and the damage to the economy by the disablement of finance is warned. To solve the current problems of global macro-financial negative externalities, the ignored financial ethics is stressed; microscopically, rational boundaries of financial intervention should be underlined; macroscopically, a new balance between international politics and economy and a new international monetary order should be set upTo sum up, this topics is very Meaningful in the theory and reality. In the current of the outbreak and spreading of global financial crisis, we are seeing the significant impact of negative externalities. Can be said, since the last century and this century, the global financial crisis is Caused the U.S. subprime mortgage crisis is a largest Concentrated, extreme performance and example of financial negative externalities. Although the description of its are voluminous, but the thinking about it just begun. Thus, in current, the study on financial negative externalities is underscores its profound theoretical significance and the great practical strategic significance.