Analysis Of The Nature Of The Economic Crisis

The global economic crisis in 2008 has challenged the reality explanatory of the two major branch theory of economics,western economics and political economics. Compared with western economics, political economics is more systemic in the analysis of the phenomenon level and more profundity in essence level. However, because of the weakness of the virtual economy theory of political economics, the reality of crisis cannot get a coherent explanation from appearance to essence. This weakness roots in the fact that the existing labor value theory cannot unify the three aspects of economic activities, psychological fluctuation, material circulation and social relationships change. Thus make the relationship of virtual economy and real economy and monetary flow fail to get a clear definition. Therefore, the key to compensate for the lack of virtual economy theory is renewing the understanding of wealth and labor value theory by unifying this three aspects.This paper first expands the perspective of labor value theory, looking wealth as a kind of social power; Then based on this, it makes definition of virtual economy and real economy and construct the overall economy operation model, and then adds the debt and exoteric condition to the model to discuss; Later, it analyses the mechanism of the current economic crisis. Through this mechanism, the crisis can be explained coherently from phenomenon to essence, which makes political economics have more powerful explanatory.