On The Function Of Fictitious Economy

Since 1970s, the process of fictitious economics began to accelerate in the world. Just like a coin with two sides: on one hand, it pushed the economy and enhance the welfare of people, on the other hand, it also furnish the world with potential cause huge risk factor of the financial crisis and economic crisis. This prompts us to study the fictitious economy and its function. Based on the past research, this paper analyzes the fictitious qualitatively (theoretically) and quantitatively (based on model). Theoretically, this paper explores the profit source and the inflation of fictitious economy and "deviation of stock market and real economy" based on the analyzing the difference between value and wealth. And then, this paper generally analyzed positive and negative effect of the fictitious economy on the macroeconomic development. In the model analyses, this paper recognizes the difference between long term and short term. In long term, after the reviewing the past research, this paper provide with a new economy growth model under fictitious economy based on analyzing the strict term of economic growth and illustrate the mechanism the fictitious economy affect the macro economy. In short term, this paper examines the short-term function of fictitious economy based on the fund-flow approach andKeynes' macro economy identical equation. Finally, this paper analyzes the sticking point of our country' s stock market and illustrates the process based on analyses of supply and demand, and then conclusion is drawn: uncompetitive acquisition of market fund is the sticking point of the stock market and then brings forward corresponding measures.