A Study Of The Relation Between Fictitious Economy And Entitative Economy

The fictitious economy is a concept which is relative to entitative economy. If we define fictitious economy from Karl Marx's fictitious capital, it means economic activities which depend on financial market, or we can say that fictitious economy is about holding and transacting activities which is independent of entitative economy. It shows from current world economic statistics that the proportion of fictitious economy and GDP becomes larger in the world and the increasing speed is faster and faster.In current economic society development process, fictitious economy and entitative economy make of new situation of modern economic system. Fictitious economy bases on entitative economy and has individual movement rules, meanwhile it connects with entitative economy nearly. Both of them accelerates and develop. Fictitious capital develops rapidly and from middle of 21 century, it develops with a bigger speed. The development of fictitious capital is nearly connected with the development of securities market. Due to the support of fictitious capital and securities market, lots of high technology enterprises develop rapidly in America, so the new economy arises. Fictitious economy becomes more and more entitative and entitative economy becomes more and more fictitious. The bringing of fictitious economy relates to power, monopoly, information, tradition, culture and sensation. Theoretical analysis of the relations between fictitious economy and entitative economy can help us understand the development characteristic and laws of current world economy.The expansion of fictitious economy on the one hand can help allocate resources better and economic increase, the other hand the break of fictitious capital prices will make negative effects to entitative economy. Researches on relations between fictitious economy and entitative economy have theoretical and practical meanings. In 2007 global financial crisis caused by American second-class loan crisis showed the enormous impact of fictitious economy to entitative economy. Because of the negative impact of fictitious economy including real estate and financial industry, the entitative economy faced a lower development speed. Before long, Russia in 1998, Southeastern Asia in 1997, Mexico in 1994, Japan in 1990 faced the economic crises which were brought by drop of fictitious capital prices. So we need to research the relations of fictitious economy, financial crises and entitative economy and discuss how to avoid the risks brought by fictitious economy.