The Causes,Influences And Countermeasures Of The Phenomenon Of “Translate The Economy From Real To Fictitious” In China's Economy

With the 40 th anniversary of reform and opening up,China's economy has undergone a qualitative leap.With the collapse of the “Bretton Woods System,” the control of currency circulation by countries is no longer affected by their gold reserves.Even some countries began to encourage loose financial supervision to achieve financial liberalization.Loose monetary policies and government advocacy have led to the rapid development of the virtual economy.Affected by the economic globalization,China's virtual economy has also flourished.The proportion of GDP in the virtual economy is getting higher and higher,and it has a crowding out effect on the real economy.In China,there has been a phenomenon of “Transform the economy from real to fictitious”.The development of the virtual economy must be based on the real economy.The size of the real economy determines the development of the virtual economy.In turn,the development of the virtual economy provides financial support for the real economy,which can better promote the growth of the real economy.The excessive development of the virtual economy,although it will bring temporary false prosperity,will eventually burst into a bubble.When the economy moves toward “Transform the economy from real to fictitious” it will have a serious negative impact on China's economic development.The virtual economy and the real economy.It is necessary to develop healthily and avoid moving toward “Transform the economy from real to fictitious”In order to make the virtual economy and the real economy develop healthily,this paper uses the literature analysis method,quantitative,qualitative research method and comparative analysis method to analyze the current situation of China's virtual economy and real economy,and defines the scope of virtual economy and real economy.The cause and harm of China's economy “Transform the economy from real to fictitious”and making policy recommendations.This paper also uses the empirical analysis method to analyze the interaction,steady development and healthy development of the virtual economy and the real economy.Based on the theoretical analysis of real economy and virtual economy,this paper makes an empirical analysis of the relationship between fictitious economy and real economy.The first one of the paper mainly explains the concept of “Transform the economy from real to fictitious” and points out the impact”Transform the economy from real to fictitious” on the economy.The second chapter combs the characteristics of the real economy and the fictitious economy and the development context,what's more it has also illustrates the development of the virtual economy and the real economy in China.The third chapter analyzes the causes and harms of the phenomenon of “Transform the economy from real to fictitious”.The fourth chapter use the empirically analyzes to analyzes the relationship between the virtual economy and real economy.The indicators of virtual economy are the turnover of debt,stocks,and funds,GDP is the index of real economy.After the analysis we can find that in the long-run there is a positive correlation between debt,stocks,funds,and real economy.National debt is the Granger cause of GDP,and GDP is the Granger cause of the fund.Under the significance level of 15%,the stock is the Granger cause of GDP,and the interaction between the virtual economy and GDP exists in the short term.Although the response of GDP to the representative variable of the virtual economy is sometimes negative,it is still relatively obvious on the whole,with stocks and funds being more obvious.The fifth chapter summarizes the experience of promoting the development of the real economy in Europe and the United States,sums up the R&D investment,increases the education funds,reduces the taxation experience and so on.How to restrain China from “Transform the economy from real to fictitious” to promote the coordinated development of the real economy and virtual economy.The sixth chapter makes some suggestions like: Improve the financing environment and promote the growth of the real economy;strengthen the supervision of the financial market,promote the healthy development of the virtual economy;optimize the market system and improve government functions;improve fiscal and taxation policies and increase investment enthusiasm.