Research On The Global Financial Crisis Occurred At The Beginning Of The 21^st Century

The sub-prime crisis, which is erupted from U.S., has evolved into the global financial crisis, the crisis initiates the recession of the world economy and the effects of the crisis are continued to spread to the real economy. The crisis has not only impacted the American economy, but also produced a profound influence to the world economy. China, like other emerging countries, has also been impacted by the crisis and will meet unprecedented difficulties and challenges from the crisis. At the same time, with the deepening of reform and opening, the accession to the WTO, the development of the financial liberalization and economic globalization, China is gradually integrated into the global economic system, and become increasingly effected by the change of the world economy. In addition, the financial market, especially the capital market in China is still in its infancy. Therefore, it is very meaningful for China to pay close attention to the trend of the crisis, analyze the root causes of the crisis deeply, and draw lessons from the crisis. In this way, China could protect the financial market and keep the healthy development of the national economy.At beginning of this paper, Chapter I is the introduction of this paper, it includes the background, meaning and the main theories of the research, as well as the innovations and shortcomings of this paper.Chapter II gives a brief overview of the USA financial market firstly, which could give the main background information for the financial crisis occurred at the beginning of 21 century. Then, the second part of Chapter I introduces the main evolution of the global financial crisis, including the subprime crisis happened in U.S.A, and then the U.S. subprime crisis evolved into a global financial crisis and continually spread the effects to the real economy of the world. Lastly, it gives the prospects of the crisis'recovery.The first part of Chapter III gives the detail analysis of the crisis'effects, both on the United Stated and the world. Then, the second part of this chapter analyzes the reasons of the crisis from the perspective of the plutonomy. The reasons could be divided into three levels, namely, the direct triggering reasons, the internal reasons as well as the basic fundamental reasons. Upon this analysis, this paper comes to the conclusion that the crisis is rooted from the basic contradictions of capitalism.Chapter IV presents the main measures, which are taken by the major countries in the world to against the crisis. These measures are the policies of the asset injection, substantial reduction of interest rate, expanding fiscal expenditure, strength control of the financial market, nationalization, strength legislation, and strength international cooperation. Based on the introduction of the measures and the analysis of this crisis'reasons, the second part of this chapter puts the in-deep thinking of the effective measures to against the crisis. The key point is to keep the balance of the government's macroeconomic control and the regulation mechanism of the market. Only in this way could we make full use of the macro-control to achieve our targets.Chapter V first gives a brief analysis of the crisis'effects on China firstly, mainly related to the trade condition, the stock market and real estate market, the foreign exchange reserves, the employment condition and so on. Subsequently, coming to the second part of this chapter, which is the most important part of the whole paper. Combining with the analysis of the evolution, reasons and effects of the crisis, this part gives the detail instruction of the inspirations to China, which are drawn from the crisis. First, improve the basic system continuously, including the basic economic system and the legal system. Second, as we all know that ensuring the fairness of income distribution is the basis of the economic and social stability. So it's important to coordinate the relationship of efficiency and equity to ensure the equity of the society. Third, strive to self-development in order to reduce the dependence on external economies. The measures mainly include the following aspects, namely, the promotion of domestic demand, the adjustment of the attracting foreign invest policy, the encouragement of the independent innovation, the control of the foreign exchange reserves'size and the adjustment of the foreign exchange reserves'investment structure. Fourth, maintain health and orderly development of the financial market. Mainly China should proceed from the following three aspects. China should first correct the understanding of the relations between the virtual economy and real economy, then China should continue to strengthen and improve financial supervision to prevent financial risks, and finally China should correct the understanding of financial innovation, not only encouraging innovation, but also pay attention to strengthen appropriate regulatory measures. Fifth, China should also strengthen international cooperation. China should undertake the corresponding international obligations, and at the same time, raising its international status, trying to promote the reform of the international monetary system continually.The final part of this paper, Chapter VI is the conclusion, which gives the summary of the methods existing in writing this paper and the difficulties and problems when composing the paper.The innovation of this paper is using the plutonomy's perspective to analyze the financial crisis. Firstly, using the plutonomy's perspective to analyze the root of the financial crisis, and come to conclusion that the financial crisis is originated from the inherent social contradictions of the capitalist system. Second, when analyzing the inspirations to China, the paper gives the plutonomy-related suggestions, not only from the economic perspective, but also from the plutonomy's perspective, and the suggestions include improving the basic economic system and legal system, ensuring the social equity and so on.