| Finance as the core of modern economy, financial security has become a modern society the topic of general concern. U.S. financial crisis in 2008 led to recession in the world allow people to feel the fragility of the financial system. Immediately after that, governments around the world to take concerted action to save the market of large-scale, so that people in favor of and against the same loud voice. The situation continues to develop, a number of economic indicators continued to decline, but some economic indicators have stabilized quickly. All this seems to tell us the situation was not so, government intervention in the economy and may be necessary. But people also do not forget that the crisis has done before, in the role of the bubble period. As part of economists as of criticism, the Government has always been this century's big bubble initiator.Domestically, China's strong government intervention in the market economy can be stabilized to a large extent in theory, economic fluctuations. However, due to our country in a very complex social system of the transition period, all aspects of the system is not perfect, the relationship between central and local governments are countless. A local government in the course of economic development has become the main interests of independent, local government acts related to financial security.In this paper, the theory of public goods and externality theory to explain the financial security and the relationship between local governments. Pointed out: financial security of public goods, the need to be provided by the government as a regional financial security needs of local public goods provided by local governments; the external behavior of local governments led to a regional financial risks. Financial security and the relationship between local government, this article from the market and the elimination of external methods that can take appropriate measures to eliminate the external behavior of local governments. |
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