Research Of Fictitious Economy On The Transmission Of Financial Crisis

The development of fictitious economies makes economic structure of the whole world undergo significant changes. It has further detached from the real economy and has increasingly become a relatively independent economic activities. With the development of the fictitious economy and its globalization, its impact on the development of global real economy is also growing. Appropriate development of the fictitious economy can meet the internal demand of economic development, provide a good platform to promote the real economy to develop healthily, rapidly and orderly. However, the fictitious economy is a "double-edged sword". It for one thing promotes, but for another thing has a negative effect on the development of the real economy. When the fictitious economy over-expansively detaches from the normal operation of that track, it would trigger a financial crisis, even the economic crisis, and results in overall economic recession, and greatly undermine the real economy. Therefore, we need regulate and control the development of the fictitious economy so that not only it stimulate the real economy developed healthily, orderly and rapidly within the moderate range, but also it doesn't cause a financial crisis.Firstly, this article reviews the domestic and international literature about the fictitious economy and the transmission mechanism of financial crisis, identifies current gaps in both research and finds entry point and breakthrough of our own research. Secondly, from the history evolution process of the financial crisis, the article analyzes the relationship among currency crisis, credit crisis and economic crisis, and defines the financial crisis. Then the article analyzes the factors that lead to the financial crisis. And the article proposes the definition of the fictitious economy, identifies the conditions from its development process, analyzes its postive and passive effect, finds its operation laws, summarizes its transmission mechanism on the financial crisis. Finally, the article presents necessity and the specific measures of regulation and control of the fictitious economy.