Capital market, Effective demand and economic growth

Author: Li Xuefeng
Publisher:
Publish Date: 2005-06-01
Features: During the research process of this book, we made the following theoretical efforts. First, this book is the first to systematically and explicitly study the role and impact of stock market development on effective demand, which represents a deepening and expansion of traditional financial development theory, particularly the new financial development theory. Second, one fundamental feature of the neoclassical paradigm is its assumption of monetary exogeneity. However, in this study, especially when examining the impact of stock market development on corporate investment expenditures, we adopt monetary endogeneity as the theoretical foundation. Researching the relationship between the stock market and economic growth from the perspective of monetary endogeneity may represent a breakthrough and innovation in existing financial development theories. Third, to date, theoretical research on the development of the stock market and institutional change has been fragmented and incomplete. This book, however, focuses comprehensively on the interaction and mechanisms between stock market development and institutional change, which also serves as a supplement and refinement of traditional financial development theory and new financial development theory.