Analysis On The Causes Of The Current Financial Crisis

The sub-prime mortgage crisis broke out with the New Century Financial Corp.'application to the court for bankruptcy protection in American in the April 2007.After that, the crisis spred rapidly all over the world, and became the global financial crisis. It has the great impact on the global economy.After the outbreak of the crisis, experts and scholars at home and abroad have been studied the issue. First of all the question is the causes of the current financial crisis. Most of the literatures are from the economic system, financial institutions, monetary policy, financial supervision, such as internal analysis to analyze. They don't reveal the root causes of the crisis. In this paper, the researcher, from the Marx'theory of fictitious capital's angle, not only analyses the direct reason of the current financial crisis, but also studies the root causes of crisis. Finally it discusses the enlightenments of our country economy's development under the current financial crisis background.In this paper, the first part is the literature review. It introduces the causes of the current financial crisis in two aspects: the general analysis and the analysis based on Marx. The first chapter introduces the Marx's theory of fictitious capital. It includes five aspects of the fictitious capital: connotation and the types, the formation, the relations between the fictitious capital and the real capital, the relations between the fictitious capital and the economic crisis, the dual effects. The second chapter has outlined the financial crisis's basic situation. It introduces the background and the development of the current financial crisis, discusses the three characteristics of it. The third part analyses the root causes of the current financial crisis from the Marx'theory of fictitious capital'angle of. This is the key part. It summarizes four aspect reasons: the sub-prime mortgage crisis stemmed from the real estate froth, the inflation of the credit and the infinite extension of the fictitious capital, the serious unbalance between the fictitious economy and the entity economy, the contradiction of the capitalism. The fourth chapter elaborates the enlightenments of our country's economic stable development.