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 and research on real-world issues of mainstream economics, and to discuss current economic issues in China based on the re-establishment of a theoretical system. It particularly engages 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 economy is entirely wrong, making it impossible to discuss the aforementioned theories and real-world issues. Only by adopting a monetary economy perspective can the problems encountered in China's current economy be understood and explained, and genuine theoretical analysis and debate can be conducted. From the perspective of monetary economy analysis, 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% should be maintained in the long term. Due to the significance of this issue, it is very much hoped that a discussion can be sparked on it. The theoretical debates the book intends to discuss are undoubtedly extremely complex, and the goals it seeks to achieve can be seen as highly 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 confident in the arguments and logical proofs presented in the book, because the main issue does not lie in the theoretical complexity, 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 great economists and thinkers Smith, Marx, and Keynes, and buried the Cambridge capital controversy. Once this attitude is excluded, what the book reveals 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.