Fictitious Capital, Credit Capacity, And China's Economic Development

In this paper,based on the recognition of international economic situation and financial crisis,I mainly discussed the meaning and characteristics of fictitious capital under the perspective of national economic strategy and analyzed how to enforce the credit capacity, expand the size of fictitious capital and optimize its structure in order to promote national economic growth and accumulation of wealth.The article recognized that fictitious capital is given girth by the breakthrough of currency extent.With the development of credit system, fictitious capital generated correspondingly.In the process of financial development,its shape changes continuously and it has become a key element to the economic world.Fictitious capital is not only independent of its form;but also its movement is gradually getting rid of the restriction of real economy and rendered a unique way.This article also described that fictitious capital could provide producers and consumers with a more abundant intertemporal options and then made them achieve a higher level of dynamic utility maximization;it also provide a effective system of allocation for a country to obtain internal and external financial resources,thereby expanding economic production capacity and achieving the benefit of international comparative advantage.On the other hand,it will bring great risk if fictitious capital expands without control.Credit capacity is the basis of it and credit system is the crucial support.The level of credit capacity development determines the size and structural of the fictitious capital.Consequently,the research and discussion to address how much and what kind of fictitious capital is the key to this issue.Now China confronts many problems and contradictions and requires a systematic and careful analysis under many different perspectives.It will be quite beneficial if we got a profound recognition of the relationship between fictitious capital,credit capacity and the country's economic development.This article also provides some solutions and policy recommendations.