Study On The Internal Relations Between Fictitious Economy And Real Economy

Starting from its embryonic stage, fictitious capital is always changing its forms and types, and expands quickly until forms a new mode of economic activity. As a result, it has greatly influenced the countries'economy among the world. With the deepening of the economical monetarization and financialization, the financial innovation, symbolized by securitization and derivative, has been in continuous progress, which propels the fictitious capital much forward. Presently, its scale has exceeded that of the real economy and has been rising along. Fictitious economy is just like a"two-side"sword: on the one side, it benefits real economy; on the other side, it affects every aspects of real economy and attacks the economy among the whole world. The Asian Financial Crises in 1997 is such a typical case. Therefore, it is quite necessary for us to have a proper understanding of fictitious capital in order to exploit its advantages and avoid its disadvantages as well. This paper, concerning the above-mentioned situations, will try to analyze the internal relations between fictitious capital and real economy among the whole dynamic process of fictitious capital development, so as to provide a reasonable framework for the two kinds of economy and some theoretical foundations for the healthy development of fictitious economy in China.Firstly This paper define its own concepts of fictitious economy on the basis of the research of the scholars at home. In addition, it has made a contrast in quantity about the current situations between the two kinds of economy among the globe and in China. Secondly, the main part of this paper focuses on the internal relations between fictitious economy and real economy. On the one hand, it is about the interdependent relation. Real economy is the basis of fictitious economy and its cycle can determine that of the fictitious economy. Also, the appropriate development of fictitious economy can improve that of the real economy. Moreover, this paper, by virtue of the substantial evidence, has made an analysis about the relativity between fictitious economy and the Chinese economic growth by adopting the E.G. Co-Integration, Granger Causality Test, and has obtained a conclusion that there is a close relation between the two. On the other...