The Study Of The Evolutionary Mechanics Of Fictitious Economy

The Subprime lending crisis of 2008 has had so profound an influence upon the global economy, that we have to focus our attention on the development of fictitious economy. In the related records, the study of a fictitious economic mechanical evolution from the historical perspective has been lacking. Moreover, the fictitious economy in China is still in its primary stage compared with the developed countries. Therefore, how the fictitious economy has evolved in the developed countries, holds much significance for China.First of all, this essay contains full statistics, and examines the development offictitious economy from the angles of both the stock and flow rate. Findings indicatethat the development of global fictitious economy shows a strong momentum ofgrowth, and has characteristics of internationalization, derivatization anddifferentiation (between areas). Following up, the essay focuses on the birth andevolution of fictitious economy, trying to outline its evolution, and divides thedevelopment into three stages according to the degrees of fictitiousness. At the sametime, the essay analyses the interactive relationship between fictitious economy andreal economy, while modern economy is pushed forward upon the wheels of thesetwo kinds of economy. Lastly, the essay tries to approach the inner mechanics andpatterns of the fictitiouzation of economy from a historical view, using relevanttheories and methods of the new institutional economics. As the studies indicate, thedevelopment of fictitious economy is in fact the transformation of financial systems,and there are obvious connections between the fictitious and the real economy. Everyleap in the real economy will bring about new demands on the financial institution,and therefore bringing about innovations in the institution as well, which in turn willhave profound influences on the real economy. Following this pattern, the twoeconomical types promote each other, and evolve on their own, finally forming theprogressive spiraling pattern.