The Mutual Relationship Between Fictitious Economy And Real Economy

This paper mainly studies and explores the mutual relationship between fictitious economy and real economy. Fictitious economy is one kind of economic or transaction activity resulting from the recycling movement of fictitious capital which is based on the finance system(financial tools , financial institution and financial market).The definition of fictitious economy derives from Marx's conception of fictitious capital. As the "paper-made copy" of the present capital, the connotation of fictitious capital is just the ownership certificate for gathering income. Therefore, fictitious capital can be understood to be the capital that is separated from the present capital, exists in the form of valuable security and can bring about certain income to its holders with the existence of interest bearing capital. Separation from the present capital and the nature of interest bearing is the essential characteristics of fictitious capital.Credit is value movement with consideration, and fictitious capital is based on the emergence and development of credit system, furthermore, fictitious capital itself, as a kind of direct transference tool of value, is also a kind of credit tool.The relationship between fictitious economy and real economy is interactive: on the one hand, the development of the fictitious economy is constrained by the real economy, and its emergence is based on the development of the latter;on the other hand, the former exerts great reaction on the latter. Firstly, this kind of reaction is manifested by the fact that the movement of fictitious economy is relatively independent of the real economy;secondly, it can improve economic growth by trans -ferring the savings into investment in term of credit tools such as stock and bonds;moreover, it has fortune effect which will improve consumption level. But the negative reaction of fictitious economy must not be neglected, that is, fictitious economy can possibly result in bubble economy.Positive analysis is made to study the relationship between fictitious economy and real economy. By introducing the common used variable indexes representing the stock market and economic growth, we make equation estimation on the relationship of stock market and economic growth. The result proved that a weak positivecorrelation exists between them, though it is not obvious.