| Currently, the reform of our country’s fiscal system has become a major topic of economic theory. Of the party3in the16th Party Congress and17th Party Congress, our government had put forward to establishing and perfecting China’s public fiscal requirement. Deepening fiscal system reform of our country is imperative, and how to know the public finance system is the key to deepen fiscal system reform. As founding a state, our country mainly appeared in production and construction finance, dual finance and public finance that three kind of financial modes, and the basic idea of our country’s existing public finance theory is that finance from the competitive field greatly shrink or even completely quit. According to the requirement of public finance, public finance can effectively regulate the government and market behaviors, and can better solve the financial" offside"," vacancy" and" dislocation" wait for a problem, but cannot deal with the enemy of the economic cycle fluctuation of the modern market economy. As our country in economy of inside and outside of this complex economic disequilibrium environment, current theories of public finance have lagged behind the needs of economic development.In the paper, putting forward the regulation of public finance is a new theory that the control type public finance should be adopted in our country, even the world main market economy countries, and the mode of finance is also the most ideal mode of finance in predictable human history.One is the social division of labor and development requirement of public finance. Commonality of public finance refers to the functions of community to provide the public product, satisfying the social public demand. Public finance is formed from the social division of labor. Division leads to social product differentiation into profitable products and non-profit products, and product profitability can be determined by the market mechanism, but non-profit products must have the public finance provides, therefore, social development need public finance as the premise.Two is that modern market economy and periodic fluctuation require finance with the counter cycle capacity, and must have the regulation of finance. The modern market economy has inherent unbalance, and its performance is cyclical. World economy from Adam Smith, Marx, Keynes era to the recent" subprime crisis" period, its market volatility has always existed and there is growing trend, but market volatility can not be eliminated, only the use of fiscal method regulation ability makes market disequilibrium eased, this is the modern finance regulation.The unbalanced economic development has brought about three major constraints for the choice of the financial mode. These constraints require that China finance must have a public and regulation. One is external economic impact persists under the open economy condition, which will become a threat of China’s economic balance. Two is the choice of the financial mode exists efficiency constraint conditions. After thirty years of rapid growth, our economy is having the problem of rising cost of elements, three strategic industries reaching the cap, the population is rapidly ageing. The future growth of the economy may be trapped into great stagflation. Three is our country’s difference of income-allocation expanding ceaselessly. The income gap of our country dweller, no matter absolute or relative size scale, are expanding rapidly, and the income-allocation inequity of our country dweller will further aggravate.The new China finance has60years of development, whose former thirty years is under the planned economy system, and latter thirty years is changing from planned economy to market economy shunt of economic system. Analysis shows that our country’s financial mode change from the basic context is from regulated financial mode to regulated public finance mode, and the end of this process should be public and regulatory equilibrium. Public finance matching native market economy is essentially different from construction fiscal, but it can not match the modern market economy, not responding well to the modern market economic cyclical fluctuation, therefore, public finance is a kind of negative financial system. Public finance theory is the economic liberalism, whose policy advocates is the essence of laissez-faire, and this claim is purely from the perspective of fiscal revenue and expenditure balance concluded, so public finance is a negative and backward mode of finance. The system of public finance, financial system, will make the loss of function of resources allocation and" discretionary" ability.This study constructed a complete coverage of financial efficiency model, combined with the influence of American "subprime crisis" to our country in2008, and public finance causing efficiency loss. According to three kinds of finance theory to design three kinds of financial policy plan, calculation results show that, if pure public fiscal policy takes implementation, our country will be difficult in coping with external shocks, then the economy herself will be in the financial collapse. China’s public finance theory has its historical inevitability:the history thought of" make both ends meet" management is our government’s mainstream thoughts; there is frequent " overheat" phenomenon in China’s economic development, but public finance has the function to constrain " investment hunger" and" economic overheat"; to keep balance of payments and convenient management, public finance has operated on the obvious advantages. While regulating public finance is to develop the useful and discard the useless, control of public finance expenditure range includes all present public finance ranges, but the regulation of financial management is the method that always keeps regulation in significant position and to transform the financial management.In conclusion, our country’s public finance theory for production and construction finance is a historical progress, but there are insurmountable defects. Regulating public finance is the inheritance and development of public finance, combining financial control and public nature, so it is according with the need of financial model of our country and world market economic countries. China’s mode of finance from public finance to regulating public finance, is a revolutionary breakthrough and the inevitable trend of financial management.The main innovation of this research:(1) Proposed the "two laws" of modern finance. This study believes that" regulation " and" public" of this" androgyny" is a modern financial basic connotation, as the eternal category, also is the modern financial basic attribute, must rise to a law, namely" fiscal bisexual law".(2) The control model of public finance is a kind of finance that is suitable to the market economy system. In this study, public finance only solves the defects in the structure, and did not solve the volatility of the market defect, and public finance is a kind of finance related to the free market economy, adapt to the system, but regulating public finance is suitable to the market economy system and the modern finance system. Regulating public finance theory and the theory of public finance, is of a great progress.(3) Proposed the great stagflation theory of the economic growth in China. Faced with dramatic undercuts of low cost advantage, three strategic industries appear peaked signs, population aging may arrive ahead of times, and other factors, our country economy engine starts failure problem, our country will continue to take the policy of expanding domestic demand, but this may lead to rising asset price.(4) Point out that the public finance is essentially a negative view of finance. In this study, public finance is the financial system according with Adam Smith’s" laissez-faire", the new liberal economic thought. Public finance believes that market can automatically balance, denying that the modern market economy has periodic fluctuation features, which supports to abandon fiscal adjustment, allowing the market to fluctuate freely.(5) Proposed the financial system analysis framework of "regulation of public". All the financial system selection analysis is inseparable from the analysis of history, historical data and historical events are the base of finance system. This paper has high generality of "regulation of public" cassette analysis framework, and analysis of China’s financial system evolution trend, and the conclusion on the realistic explanation ability is satisfying. |
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