Financial Innovation and Virtual Economy

Author: Wang Aijian
Publisher:
Publish Date: 2003-10-01
Features: Since the late 20th century, the process of virtualization in the world economy has accelerated significantly. As virtualization deepens, the role of virtual capital in the economy becomes increasingly prominent, and its impact on the economy becomes more widespread. Due to the inherent ability of virtual capital prices to create bubbles and their high sensitivity to uncertainty, a series of bubble events have occurred, and the cyclical movement of the economy has also become more pronounced, with commercial crises increasingly being replaced by economic crises. As the role of virtual capital in economic life becomes more prominent and its significant impact on financial crises forces us to conduct in-depth research on it. Based on years of dedicated research and teaching practice, Professor Wang Aijian wrote this book. The book, spanning 18 chapters, conducts a systematic and in-depth study on the relationship between financial innovation and the virtual economy. In terms of logical order, it first elaborates and introduces the theory, characteristics, and challenges of financial innovation, then focuses on discussing the concept, positive and negative effects, and operation of the virtual economy, followed by a study of the relationship between financial innovation and the virtual economy from four aspects, and finally, based on an empirical analysis of China's financial industry, proposes countermeasures for China's development of the virtual economy. The innovations of this book are: (1) Innovation in research perspective. Currently, most research focuses on one aspect to study the financial sector or the virtual economy, but this book adopts a new perspective—the perspective of the relationship between the two. By studying the relationship between the virtual economy and financial innovation, this book applies financial innovation theory and advanced methods to establish an interactive relationship between the two, which is conducive to breakthroughs in virtual economy research. (2) Based on a systematic study of the development of the virtual economy, this book explores the laws of capital value forms detaching from the real economy and moving independently using economic principles, and employs empirical analysis methods to study how excessive operation of virtual capital can lead to a bubble economy, demonstrating certain theoretical depth and practical significance. (3) Through normative research and empirical analysis from the perspectives of financial innovation and the virtual economy, this book proposes viewpoints such as "financial innovation enables the large-scale development of the virtual economy," "the virtual economy promotes the development of financial innovation," "credit innovation is the foundation of the virtual economy's development," and "the virtual economy promotes the innovation of financial institutions," which are novel and insightful. (4) The book proposes that we must face the wave of virtualization, overcome its negative impacts, and puts forward ideas and steps for China's development of the virtual economy, which is highly operational.