A Study On Bubble Economy In The Mode Of Virtual Economy

Virtual economy is the inevitable result of the development of the relationship between commodity and money, and is the build-in attribute of money assets, whose characteristic mode of motion determines its important significance in modern economy and society. The fundamental characteristic of virtual economy lies in that it is the value movement system which is based on real economy. Its development is the process which the contradiction existed in capital become external. At the same time, virtual economy is an important mechanism and measure which help to expand real economy, and its development reflect that the material product and transaction are developing from low to high stage. The paper compares the definition of virtual capital and virtual economy, concludes that virtual capital, financial capital and fictitious capital are different concepts, while the meaning of virtual economy, monetary economy and bubble economy shall not be misunderstood. The development has a positive impact to real economy, it is doubtful to take the real economy and virtual economy as contradiction on the presumption that the booming of virtual economy is an upside-down pyramid to the real economy. The virtualization is a normal phenomenon in economic development and at its early stage in China, which needs further deepening in the future. When virtual capital corresponds with real capital, they complement each other simultaneously and therefore promote economic development, whereas when they move in reverse to a certain degree, they block each other and therefore develop into bubble economy, and finally result in economic crisis. It is of extreme significance to the present economic development to determine proportional scale between virtual and real capitals and to properly manage virtual capital market. Speculation and expectation are primary cause of the bubble economy in the virtual economy. With the continuous expansion of financial asset, they are easily evolved into the pure speculative capital. If the price of some asset is soaring according to expectation, speculative capital is immediately magnetized. Due to its great vastness, self-fulfilling expectation effect totally occurs. Meanwhile, these factors are negligible during the formation of bubble economy, such as mechanism and system. At present the central government has come to see the potential risk in real estate circles and taken a series of measures to avoid it. Besides, the correspondent supervisor should offer the alarm mechanism according to the measuring indicative of the virtual economy. And what's more important, we should properly treat the prevention of bubble economy during the development of virtual economy and real economy. In addition to monetary policies, we should give its attention to the exercising of financial policies, such as tax.