The Essence Of The Fictitious Economy And Its Impacts On The Real Economy

In the last three or four decades, the fictitious economy has been showing a trend of accelerated development. Financial crises have occurred frequently worldwide. In-depth study of the fictitious economy looks more and more necessary and urgent.First, this paper discussed the concepts of value, wealth, fictitious nature, fictitious value etc. Then defined that:the real economy means the economic activities focussed on value, the fictitious economy means the economic activities focussed on fictitious value.Then explored the essence and natures of the fictitious economy, comprehensively using speculation, formal logic and historical logic, system analysis, specification and empirical analysis, concluded that:the fictitious economy is the result of the development of economic alienation-from the exchange of needed goods to the trading profit, the path to profits alienated from the physical products (including services) to the fictitious products creation and trading transactions;Rich funds because of productivity and social development, human's profit-driven and fictitious assets' fictitious nature jointly contributed to the development of the ficti tious economy; Fictitious economy can serve and contribute to real economic value and wealth creation, but it does not create value and wealth. Fictitious nature is a fundamental property of the fictitious economy and the essential characteristics,and it is the base of other characteristics.Then studied the fictitious' impacts of both positive and negative on the real economy by modling monetary mechanism, confidence in the credit mechanism,price-and-profit mechanism.Finally, I reviewed and analyzed the 2008 World Financial Crisis, briefly introuduced the development of our fictitious economy, then gave suggestions that:we should adhere the purpose and principle of the fictitious economy servicing the real economy, carefully develop financial derivatives, carefully open financial markets etc.