Finance Penetration, Private Economy Development and the Endogenous Trend of Financial System: A Comparative Analysis of the Differences of Private Economy Development Models and Finance Penetration in China
According to thetheory on the finance and growth by western economists, the economic growth wassupported by well-operated financial system decided by good legal system.
In order to protect from the negative impact of capital inflows on domestic economy and financial system, the government should adopt effective measures.
This kind of bubble economy phenomenon increased the entire financial system vulnerability, and makes the foreshadowing for the later international capital suddenly reversal and the financial crisis eruption.
The capital market as the important part of the modern financial system contributed a lot to the Chinese economic growth. As the market's expanding scale, the perfecting system and the innovated management, it also increased the risk and complexity in its development.
The information technique, modern financial system, macro policy and economic globalization are the main four factors of new economy in the United States.
For China's economy in transitional time to develop continuously and healthy, the relation between financial development and economic growth should be understood correctly, and modern financial system fitting to rapid economic growth should be constructed, it is crucial to the success of the reform of financial and economic system.
The third chapter analysis interaction Mechanism that the impact of financial development on economic growth. It lies on three aspects: raise saving rate, the ratio of investment and capital marginal productivity.
Secondly we established the coordination approach concept model and developed the Tobin model etc, to analyse the coordination principle and approach between the financial assets structure and the economic growth;
The new financial system based on diagnosis-related groups will be in favor of private investors compared to the governement-dependent university hospitals.
In 2000, Ecuador adopted the dollar as its official currency and gave up the sucre in a desperate move to halt inflation and help a distressed financial system.
A stepped policy appears as the only practicable solution in a repressed economy, which would like to obtain a modern financial system.
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China's first attempt to develop a modern financial system was a serious initiative that ran afoul of her ancient entrenched bureaucracy.
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