What Is Financial Macroeconomics?

The international academic community usually refers to the study of macro issues related to micro finance as Macro Finance.

Macro finance

Right!

The international academic community usually refers to the study of macro issues related to micro finance as Macro Finance.

Macrofinance studies how to obtain high employment and low employment in a currency-based exchange economy

The development of macro finance has experienced the following important development stages: ^[1]

There are two issues worthy of special attention in the division of macro finance and micro finance: ^[1]

First, we cannot simply adopt the "Bring Doctrine" method to classify modern western finance as microfinance and China's traditional finance as macrofinance accordingly. The development of macro-finance and micro-finance are interconnected and promote each other, and there must be a process of knowledge integration between the two. In terms of current discipline construction, a very important task is how to use the results of microfinance to transform China's traditional macrofinance. For example, in the theory of portfolio selection, Mark Weitz used mathematical expectations and variances to measure expected returns and risks, respectively, so that the ancient financial proposition of returns and risks has a new explanation. Then, how to achieve this result Introduced into macro finance, and made it establish a new concept of financial risks and returns? Another example is that Marx's labor value theory solves the problem of commodity value and price, while the capital asset pricing theory solves the capital asset pricing The question is, can there be some reasonable connection between the two? Furthermore, Marx derived the demand for money from the perspective of the value of goods and prices. Keynes proposed speculative demand, but only regarded it as an interest rate. Function, then, can we use the capital asset pricing theory to unify commodity money demand, reserve money demand, and investment money demand? At present, China s evaluation of the state of currency and the management of money demand exist to a certain extent. It is necessary to ignore the impact of asset price changes and investment demand regulation.

Second, the distinction between macro finance and micro finance should not be confused with the distinction between theoretical finance and applied finance. Macro finance is theoretical finance and micro finance is applied finance. First of all, macro finance also has a huge problem of applied discipline system. Such as national and regional currency control and management, credit control and bank management, national level insurance, securities, foreign exchange monitoring and management, financial risk, financial derivative monitoring and management, national foreign financial management, financial legal system construction, citizens Financial awareness and moral cultivation, etc. In addition, there are various financial issues between regions. That is to say, macro finance also includes two parts: theoretical finance and applied finance, and the development of the applied part of this discipline is seriously lagging behind, leaving practical departments almost in a "crossing the river by feeling the stones" state. The biggest flaw of a discipline. Secondly, microfinance also includes many general financial theory questions, including capital asset pricing theory, market efficiency theory, etc., not only the general theory of finance, but also the most important basic theory of economics; and the theory of asset portfolio selection , Term structure theory, option pricing theory, capital structure theory, and money game theory that originated from Adam Smith are not only general theories of finance, but also will play a huge role in transforming traditional macro finance.