Fictitious Capital And Fictitious Economy Theory Research

In this paper, we defined the fictitious capital from the existence basis of the capital value. In general, all forms of the monetary capital are the fictitious capital because of their multiplicity value basis. These capitals, whether in the traditional form of money capital, such as demand deposits, cash and other forms, or as a potential form of monetary capital, such as negotiable certificates of deposit, stocks and shares, options and futures, etc; and whether in the form of the national monetary or the international monetary, are all the fictitious capital. The fictitious nature of the monetary capital is expanded from the monetary fictitious nature, which is decided by the duality of the monetary value.On the Marx's cycle theory of industrial capital basis, this paper attempts to study the monetary capital internal circulation system by taking the cycle of fictitious capital independent from the total cycle. We will study the value transfer mechanism in different occasions, and establish a systematic capital cycle theory in the credit economic condition. In this framework, we will carry on the research of some top issues such as the value transfer, international currency, interest rate, exchange rate and the international capital flows.On this basis, this paper establishes a interest rate model in the credit economic condition, which is the expanding of Marx's interest rate theory. This paper reveals the nature and mechanism of the relationship between monetary supply and demand, which is used to study the price,the value and the credit capital movement mechanisms. The model reveals that the capital margin and credit expansion play very important roles on the interest rate movement. Besides, the paper takes a research on the economic phenomenon before and after the financial crisis with the model, and reveals the nature of the crisis in a certain extent, which is used to provide the macro-theoretical support for the government economic policy guidelines. In addition, this paper establishes a exchange rate model in the framework as well. As we know, the monetary value existence basis will change when the use of money is transferred from national to international, so the money price should be decided by the monetary fictitious value in the monetary internationalization, 'which means the exchange rate should be measured by the income capitalization of the international monetary capital. From this idea, we establish an exchange rate model base on the income capitalization theory, and use it to analysis some hot questions such as RMB value and monetary internationalization.The biggest shortcoming of this paper is the lack of empirical analysis, we can not get the particular data to measure the level of credit expansion, which make the paper lack of the Data Validation; besides, it still need to take more deeper analysis on the particular questions, such as how to choose the economic policy as for the developing country, which should be improved in the future study.