Integrity And Credit

Market economy is credit economy, credit is the useful way to reduce trade cost and to better allocate resources, it's also the important approach to achieve economy virtualization. Credit ensures the healthy and fast development of the whole economy.China is now on the stage of building market economy system. There are many dishonest behaviors in the society, for example, fake commodities,financial fraud,breaking contracts,government's bad credit and so on. The lack of integrity and credibility is the main reason for these problems. Lack of integrity brings about disorder of market competition rules, it also seriously affected not only the healthy development of China's economy but also the connection between China's economy and global economy. So the whole society begins to pay widely attention to credibility and integrity problem.This paper discusses credibility and integrity from the point of economics. Using Marx economics and western economics to discuss and analyse it. At first, on the basis of summarizing related documents, putting forward my own research ways and system; then analyzing the origin of credibility and integrity,the development of credit economy through establishing a simple economics model; the third part analyses credit's extending meanings in modern society, discusses different meanings of some similar words and studies on credit capital from the angle of transaction subjects, then uses game theories and new institutional economics to analyse contract stability,property right and credit; the fourth part concentrates on not only the discredit phenomenon in both China and abroad but also the hazard caused by credit crisis, at the mean time states the theory basis of the lack of integrity; the last part puts forward basic thinking and theory consider in order to build integrity society and credit economy from the reality.