Economics and China's Economy

Author: Liu Xin
Publisher:
Publish Date: 2006-06-01
Features: The purpose of this book is to completely reject the theories of mainstream economics and its research on real-world issues. Based on the re-establishment of a theoretical system, it discusses current economic issues in China, particularly engaging in debates with mainstream economics on major theoretical and empirical issues. The most important point the book aims to demonstrate in its analysis of current economic issues in China is that the research methodology of mainstream economics in real economics is entirely wrong, making it impossible to discuss the aforementioned theories and real-world issues. Only by following the perspective of monetary economics can the problems encountered in China's current economy be understood and explained, and genuine theoretical analysis and debate can take place. From the perspective of monetary economics, the book proposes a policy issue of raising China's nominal GDP growth rate to around 20%, which is very different from the current belief that a growth rate of 8% must be maintained in the long term. Due to the significance of this issue, it is very much hoped that a discussion can be initiated on it. The theoretical debates the book aims to discuss are undoubtedly extremely complex, and the goals it seeks to achieve can be considered utterly unrealistic, as they involve rejecting the foundation of current economics and almost all empirical research while re-establishing a theoretical system. However, the author remains fully confident in the arguments and logical proofs presented in the book, because the main issue does not lie in the complexity of the theory but in the ruthless dominance of mainstream economics over the academic world for over a century, which has shaped prevailing attitudes. It is this attitude that has overshadowed the greatest economists and thinkers—Smith, Marx, and Keynes—and buried the Cambridge capital controversy. Once this attitude is eliminated, what the book seeks to reveal is merely a "naked emperor" problem: not only is real GDP fake, but the theoretical system of mainstream economics, which is built on aggregate production functions to explain reality, is entirely fictional. All the issues raised in this book are for reference and discussion, but the claim that "real GDP is fake" can be easily proven empirically.