Research On The Origin, Evolution And Realization Of Fictitious Economy

With the further development of the market economy, the fictitious economy has become an important part of the economy. After the1870s, due to economic globalization and financial liberalization, the fictitious economy penetrated and embedded in all areas of market economic activities. With the deepening of financial liberalization and penetration, the fictitious economy is increasingly affecting the social and economic life, ways of thinking and values of people, so the cognition of wealth has also undergone a profound change. People’s physical wealth concept evolved into the one which fictitious wealth and physical wealth coexist. Contemporary social division of labor is driven by the IT. It has became a history that precious metals were once a symbol of wealth and saving money was a means of wealth. Also the paper money was a present of wealth. Contemporary people have formed digital fictitious wealth concept. As the economy growing fictitiously, fictitious assets in the proportion of social wealth are bigger and bigger, the expansion is growing faster. Therefore the fictitious economy has become an important part of the social economy. But there is a huge systematic risk of the fictitious economy because of its fragility, instability and positive feedback. The unreasonable or missing regulation of fictitious economic may lead to financial crisis, damaging the economic system devastated. Since2008, the global financial crisis which was triggered by the U.S. subprime mortgage crisis, has presented warning to China’s economic development. We began to realize the importance of improving the fictitious economy’s regulatory mechanism and risk warning mechanism. It has an important effect in avoiding financial risks and preventing financial crises. Therefore, strengthening the research of fictitious economic on theory has become an urgent task in China.The origin, evolution and realization of the fictitious economy have its own historical evolution path and internal logic rule. Generally, the origin of the fictitious economy was promoted by the social division of labor and technological progress. In the undeveloped stage of human social productive forces, the original ancestor occasional barter, to the emergence of surplus products and commodity exchange appears after agriculture and animal husbandry and handicrafts was inevitable. For convenience and needs of the human commodity trading, precious metal money appeared after numerous transform a medium of exchange. And it became a medium of exchange, store of value and scale. We can say that money is the first order of economic fictitious logical starting point. Although precious metals bear the currency circulating medium, the value scale, payment functions means, storage means and a world currency, it has its own weaknesses. And the paper money was produced by the promotion of science and technology slowly. After that the bill became a new starting point for the fictitious economy, that’s the second order economic fictitious logical starting point. Since the division of labor in modem society and the promotion of financial liberalization especially in the1970s after the disintegration of the Bretton Woods system, gold and currency were completely separated. That lead to a non-monetary gold. The fictitious economy embarked on a fast track and the fictitious economy increased its scale expansion faster and faster, becoming an important part of the social economy. Causes of these phenomena, also requires us to stand on a higher perspective to reflect on the phenomenon of the fictitious economy. In addition, the fictitious economy also has a pool of liquidity reserves, allocation of resources and external buffering functions. But the fictitious economy has its own inherent complexity, instability, speculative, high-risk characteristics and strong liquidity. Thus the fictitious economy would prone to violent fluctuations by external shocks, resulting in a very large economic system damage or even severe financial crisis. Therefore, understanding and mastering the law of the actual evolution in the fictitious economy has important significance in China by exploring the origins of economic fictitiousization, internal evolution and realization of the law, particularly those concerned with the experience of developed countries.In this doctoral dissertation, the history and logic of the Marxist dialectic unity of principle was used to explore ways to realize the connotation of the fictitious economy, as well as the evolution of the fictitious economy. It gives an analysis by systematic and detailed learning from the Western mainstream economics theory. The article is started from four perspectives:Discussed ideas are as follows:The first perspective is the origin of the fictitious economy. In order to provide a theoretical basis for analyzing the fictitious economy, defines the basic concept of the fictitious economy and the associated concepts before discussing the origin of the fictitious economy system. Analysis of the fictitious economic research is divided into the origin of economic conditions and the economic fictitiousization starting point theory. First, analyze the causes of economic fictitiousization. To analyze the cause of economic fictitiousization, the logical starting point for economic social division of labor and technological progress is bound to be analyzed systematically. Social division of labor and technological progress is not only the driving force of social development, but also the cause and motivation of fictitious economic development. Social division of labor and technological progress throughout the development of the fictitious economy has always been and intertwined with the fictitious economy, mutual promotion and common progress and development of human society. The currency’s form of value has fundamentally changed in the promotion of social labor’s division and technological progress through the form of a series of social evolution, from the primitive society till now. The change in the form of monetary values the evolution process of the fictitious economy. Analyzing the promotion of social division of labor and technology is necessary to study the evolution of the economic history of fictitious economy. Second, analyze the theory of the starting point. Economic analyzing is divided into two points, the origin of money as the first point and the produce of banknotes as the second order. Since the beginning of primitive society’s accidental barter, media commodity trading was fixed to the precious metals gold and silver with the development of commodity economy. That’s the generation of money. Precious metals played a role of general monetary equivalents. Money was a real commodity equivalent as a special commodity. Thus, a fictitious currency was rather the starting point than the fictitiousization of the economy. The beginning of the economic fictitiousization was marked with the development of commodity economy and the emerging of the valueless coins. The emerging of banknotes marked another new historical starting point of economic fictitiousisation. Paper money had no value but characterized the value of its currency symbol at tnis moment, especially witn promotion ot the capitalist division of labor and technological progress, the fictitious economy had achieved rapid development. Currency could be converted into other forms of wealth, such as stocks, bonds and other fictitious assets. The emerging of banknotes signed a new starting point of currency’s completed fictitiousization and economic fictitiousization.The second perspective is the evolution of the fictitious economy. Evolution of the fictitious economy is divided into functional evolution of the fictitious economy and the timing of the evolution of the fictitious economy. The functional evolutions of the fictitious economy are discussed from two points of view. One is the evolution of the basic functions of the fictitious capital and the other is the evolution of the fictitious economy functions. Analyze the function and evolution of the fictitious economy on the basis of the basic functions of the fictitious capital. The basic function of the evolution ofthe fictitious capital measuring the value and means of circulation includes two aspects:on the one hand, the basic functions of the fictitious capital gradually evolving into a measure of value and liquidity means unity, that means payment occurs; on the other hand, the basic measure of value and means of circulation functions of evolution for the storage means and the world currency. The main function of the fictitious economy argument includes four arguments’, the fictitious assets is the energy and lubricant of the economy’s movements. Fictitious economy is the liquidity reserve pool of money. Optimize the allocation of resources of the fictitious economy and fictitious economy’s external buffering. Timing mainly discusses the history process of the fictitious economy’s evolution. It consists of three stages. The first one is the initial stage of the evolution which means money fictitiousization. The second one is the intermediate stage. And other financial base products, like stock bonds formed by the credit system and the deepening fictitious economy. The third one is the advanced stage of the evolution. That’s the fictitiousization of the international capital and the global economy.The third perspective is analyzing the realizations of economic fictitiousization in two aspects, economic analysis of fictitious reality and economic analysis of fictitious realization. Economic analysis of fictitious reality is divided into three areas:extensive application of modern information technology and Internet technology, declining margins caused by modern science and technology as well as endogenous role in promoting financial innovation. While economic analysis of fictitious realizationswas analyzed systematically in five aspects, interest-bearing capital, corporation’s demutualization, fictitiousization of the real estate and the bulk commodities’ trades.The fourth perspective is to put forward three countermeasures on the development of China’s fictitious economy on the basis of fictitious economy’s origin, evolution and its realization, In the meantime, draw on the experience and enlightenment of America, Japanese and Europe combing with the actual situation in China. First, follow the evolution of the fictitious economy and innovate the finance moderately. Second, strengthen monetary cooperation and regulatory risks to promote the internationalization of the people. Third, grasp the trend of economic growth mode transformation and optimize the function of fictitious economy.Possible innovation and the research perspective in this article is that perspectives of the research are centered on the origin, evolution and realization of the fictitious economy. The main innovation:the causes and motivation in evolution of the fictitious economy. The micro and macro-control function of the fictitious economy. The realization of virtual economy:interest-bearing capital fictionalization, the company demutualization of property rights, fictionalization of real estate, the bulk product fictionalization of the contracts trading has been studied and analyzed.