In Finance, What Is Qualitative Analysis?

Research Process of Financial Structure, Financial Function Evolution and Financial Development Theory

Financial development theory

(Finance subject)

Right!

Research Process of Financial Structure, Financial Function Evolution and Financial Development Theory

Financial Development Theory

People have been thinking since the bank was born

After World War II, a group of newly independent countries suffered from insufficient savings and

In 1973,

Since 1973,

ES Xiao believes that there is a relationship of mutual promotion and restriction between the financial system and economic development.

On the one hand, a sound financial system can effectively mobilize savings funds and direct them to productive investment, thereby promoting economic development;

The first generation of McKinnon and Xiao Schools prevailed in the mid-70s to mid-80s. Representatives include

The second generation of Mackinnon and Xiao Schools prevailed in the late 1980s and mid-1990s.

The results of financial liberalization in developing countries were once disappointing. Many economists began to reflect on and review the conclusions and shortcomings of previous economic development theories. Stiglitz in

Hellman et al. Believe that financial constraints refer to the government's creation of rent opportunities in the private sector through a series of financial policies in order to prevent both

Hellman et al. Believe that although financial constraint theory has demonstrated from different aspects that financial constraints are reasonable financial policies for developing countries,

Hellman et al. Point out that because financial constraints create rental opportunities,

Hellman et al. Believe that although capital requirements are also a

Whether the specific conclusions of financial development theory are in line with the actual conditions of developing countries, and whether their policy claims can be put into practice

In the framework of financial constraints, the role of government is neither "

Therefore, people should treat the theory and practice of financial deepening objectively, and must not consider that there is an inevitable causal relationship between financial deepening and financial crisis because some developing countries have experienced a financial crisis in the process of implementing financial deepening. Practice has proved that effective and reasonable financial deepening practice will improve the performance of economic development and also improve a country's ability to resist financial risks. The fundamental reason why some developing countries have experienced a financial crisis in the process of financial deepening is that they have chosen too aggressive and advanced financial deepening strategies. In implementing the financial system reform, China cannot simply understand the "financial deepening" theory of McKinnon and Shaw, and simply understand that the financial liberalization of government intervention has been completely cancelled. At the same time, deregulation should be paid attention to the restriction of deregulated markets and deregulation Role, focusing on the gradualness, hierarchy and sustainability of financial deepening. "Financial deepening is a gradual process accompanied by the overall economic reform and development. Policies and measures for financial deepening should be made according to the maturity of economic development and the inherent logic of economic operation. Reasonable timing selection and arrangements are carried out in stages and in a planned way. "In the process of deepening financial development, we must strengthen the supervision of financial markets and financial institutions in the light of the actual conditions and institutional risks of our country's financial reforms, and gradually establish a relationship with the economy. A financial system that is compatible with sustainable development. 2. Financial constraints have become a necessary means for China's financial system reform.

Considering the large amount of financial risks accumulated in the Chinese financial system, during the reform process, people should objectively evaluate and estimate the long-term risks that financial deepening and financial repression may bring. Based on the principle of market allocation of resources, In the actual situation of China's financial system, it is feasible to adopt a reform strategy that combines necessary financial control and financial deepening during the period of economic transition. In addition to addressing the need for the government to intervene in economic and financial activities, China also needs to address how to grasp the intensity of the intervention to avoid the moral hazard and adverse selection of information asymmetry. Krugman, an American economist, pointed out in 1997 that improper government intervention was the essential cause of the financial crisis in Southeast Asia: the slump in asset values during the crisis caused many financial intermediaries to go bankrupt, thereby exposing financial institutions to financial crisis. The destructive effect of the activities; there is a political and economic dynamic relationship between the lending activities of financial intermediaries and the value of assets. The debt guarantee provided by the government to financial intermediaries or explicitly or implicitly causes financial intermediaries to conduct moral hazard and The root cause of adverse selection.

From the perspective of information and incentives, the theory of financial constraints captures two basic points for solving economic and financial problems. On the one hand, the government should create conditions for decision makers to grasp the information or make information-capable actors become decision makers. The government can use its own information capabilities to create incentive mechanisms for financial intermediaries to operate effectively and sustainably. Of course, the government's role is not to provide guarantees and protection directly, but to promote the functioning of the financial system's market restraint mechanism, actively promote the dissemination of information, increase the openness of information available in the market, and give full play to financial institutions and private organizations that have internal information. The advantages of this policy are not over-representation, excessive intervention, and the avoidance of financial restraint policies becoming pure financial intervention policies. Strict financial restraint policies and financial restraints may only differ. "Financial constraints should be a dynamic policy system that should be adjusted as the economy develops and move towards a more competitive financial market. It is not a static policy trade-off between laissez-faire and government intervention The related issue is the rational order of financial market development. "