On Financial Right Of Constitutional Economics

This study first tries to explore the connotation of financial right from the perspective of constitutional economics. The normative theory of constitution has constructed a "Subject-Behavior-Relief’ model to illustrate the meaning of financial right. And, the theory of new institutional economics has constructed a "Property-Relief-Path Dependence" model to analyze the function of reducing transaction costs. In fact, the market economy is not only an economy of right, but also an economy of law. The financial right gives subjects of the market the right to choose with the established system, further more, the financial right has important constitutional functions. In a word, the financial right reflects the balance between the market mechanism and regulations of a government, it plays the role of construction of a rule-selection structure. Because of this function, the financial right acquires the qualification of the "living constitution". Based on theories of the normative constitution and the new institutional economics, we definite the financial right as the trinity of a constitutional ethic, a rule-selection mechanism and a concrete action right. On the other hand, this study is an empirical study at the same time, trying to build an institutional framework of the financial right. In the writer’s opinion, there first exists a close relationship between the financial right and the established constitutional system. Second, to achieve financial freedom, we need property rights arrangements. Last but not the least, a full stretch financial right needs a market economy. Therefore, the full realization of the financial right needs the triple protection of constitutional system, the ownership structure and the market economy. Specifically, this paper is composed of five parts.First, the introduction of this paper gives a brief overview of the origin, the literature review, research ideas, methods and basic ideas, innovations, inadequate of this writing. The origin of this paper is that China’s development has been a "Financial support" development since the Reform and Opening up, especially since the1990s. The country’s credit protection, the residents of the capital protection guarantees high savings of China’s gradual reform path smoothly. This paper is structured literature review mainly with the right sort of financial freedom gauge theory, economic theory and constitutional economics. Constitutional economics research ideas reference frame of mind of financial freedom for one kind of constructive attempt. This paper mainly uses the new institutional economics theory, the constitutional economics theory and the theory of legal culture. And then, the paper draws relevant conclusions. Second, chapter one is the basic theory of the financial right. Section one gives a review of the theory of the normative constitutional theory, explaining the legal implications of financial freedom, and its relationship with the legal regulations. Furthermore, the article describes the financial right from the perspective of the New Institutional Economics, focusing on institutional arrangements, the dependent paths to achieve the financial freedom. This chapter attempts to construct the final constitutional economics as peacekeeping under the right to freedom of financial theory, point out its constitutional order for the ideal formation and significance of constitutional reform. Finally is the summary of the whole chapter.The second chapter examines the historical dimension of the financial right. Section one briefly of the chapter reviews the financial structure of our traditional financial development, pointing out that the inhibition of its financial body; then analyzes the rise of the Western world and the expansion of financial freedom; final analysis is sprout of the financial right in our country. Then, Nanjing National Government to establish a monopoly from the financial system, our country since the Opium War of the free-market-based financial development road gave way to a monopoly-based financial development, financial development during this period was mainly reflects financial freedom and national laws regulating relations. In addition, this section also investigates the relationship between the central bank functions and the financial freedom in-depth analysis. Section three mainly expounded China’s financial development during the planned economy era. The first analysis of the planned economy era of financial and banking is the "Pant" relationship which caused by financial repression. Then this chapter investigates several important keywords during the planned economy era to analyses the development process of China’s financial development from the new institutional economics perspectives. Finally is the summary of the whole chapter.The third chapter examines the real dimension of the financial right. The first section of this chapter discusses the establishment of market economy and its impact on financial development objectives. Section two deeply analyses of the status quo of China’s financial freedom, first is a simple analysis of financial development difficulties in the developing countries in the context of globalization; then discusses China’s financial development path selection, combing our country’s financial development in recent years; finally summed impede the full realization of the right to freedom of financial obstacles, including the impact of financial globalization, the special difficulties of the transition period, dual financial structure tradition. Section three investigates dependent factors of achieving financial freedom, pointing out that the financial structure and functions of the government, state-owned enterprises reform and constitutional system is the current constraints of the full realization of the financial right. Finally is the summary of the whole chapter.The fourth chapter analyzes the future of China’s financial right. This chapter begins by analyzing the previous text returned to China’s problems, explains how to understand the financial right as the trinity of a constitutional ethic, a rule-selection mechanism and a concrete action right in our country. Furthermore, this chapter attempts to forward to the realization of the right to freedom of financial logic explained, pointing out that the diversity of financial ownership and trading of building a modern financial system are our country’s realization of logic. Finally is the conclusion of this chapter. The author through the preceding analysis pointed out that China’s current financial freedom’s full stretch facing the impact of financial globalization, deepening financial reform difficulties as well as traditional structure of the financial system barriers. And, to fulfill financial freedom, we need to handle our financial structure optimization, transformation of government functions, state-owned enterprises reform and the establishment of a sound constitutional system, etc. To establish a modern financial system facing the world and the future, we must build a system fully stretched financial freedom as the core. Therefore, our conclusions are:Firstly, we need a property transactions System. Secondly, we need a sound constitutional system. Last but not the least, we expects the transformation of government functions and state-owned enterprises reforms.