A Study On The Harmonious Development Of Economic And Finance Under The Background Of The Financial Economy

Modern market economy is based on high monetization and credit, and finance has become the center of the modern economy. The development of finance contributes a lot to the economy increase, and finance also plays an important role in economy developing. In the decades, the experience of world economy development dictates that the fact that finance is one of the most significant part of modern economy development has been widely accepted and approved, and every country in the world puts great emphasis on finance development when making the economy developing strategy. As the Chinese economic reform happens, our countries’ economy develops very fast in the past30years, and so as the finance development. However, the development of economy and finance in our country are not balanced, which not only appears in regional level but also in structure level. Based on the unbalanced background of economy and finance, this article discusses the coordination between the development of finance and economy in our country.Based on the practical test of the coordination between economy and finance development, these conclusions can be deducted:(1) the development of economy and finance in our country is discordant. This article builds a set of indexes to measure the development of finance and economy when inspecting the whole coordination of finance and economy development. And it is proved that they are discordant on the whole, based on the test model. What’s more, it also happens in the industrial level. In testing the coordination of banking industry, securities industry, insurance industry and the economic development, The securities industry and insurance industry are not harmonious with economic development, while banking industry development and economic development is harmonious. All these prove that the development of economy and finance in our country is coordinated as a whole.(2) There are still some incoordination between economy and finance. The phenomenon happens when the development of finance and economy is discussed in more specific era. For instance, finance development causes crowding-out effect on personal investment, as well as broadening urban and rural income. As the financial system falls behind, the entity economy development in financial service doesn’t function well, and at the same time, the unbalanced financial market development and unitary financial market structure also restrain the development of economy.This article comes up with these solutions below to prompt the coordinated developing of economy and finance, based on the fact of testing:(1) Strengthening the relationship between finance and entity economy, and make finance serve entity economy development well. Entity economy and finance are supplementary to each other. Entity economy development is the basis of finance development, and finance development can help develop entity economy. Therefore, the relationship between finance and entity economy development is necessary to be coordinated in order to realize the positive influence on entity economy development from finance.(2) Optimize the financial allocation of resources, and prompt the adjustment of economy structure. Entity economy is the basis of finance development and also an important gradient of national economy. The financial allocation of resources should play a positive role on entity economy development, in order to prompt the coordinated development and decrease the bad influence on entity economy function.(3) Strengthen the financial supervision, and keep financial crisis away. In order to prompt the coordinated development of finance and entity economy, a number measures should be taken, such as making financial market normative, strengthening financial market supervision, keeping financial crisis and so on.(4) Break the threshold effect caused by finance on economy increase, and reduce the urban and rural income. To be specific, optimize the financial structure of urban and rural era, build the financial basis of urban and rural places, strengthen the weakness in the urban and rural financial structure.(5) Carry on system reform, and guide the development of the folk finance. Folk finance plays an important role in prompting economy development. Moreover, folk finance also should be guided and normalized.