Keynesianism Trips in China?（原創）
Introduction: Keynesianism, since has been brought to China, has actually become a mainstream economic theory which greatly affects the government in its policy making. But what has this theory brought about in our nation on earth? Did it, as has been doubted by some economists, really trip in China? In this article, I'm trying to guess the answer.
Keynesianism is the product of world economic crisis to meet the need of state monopoly capitalism. The precious dominate economics listed perfect competition and full employment as two basic preconditions, which have been proved wrong in the world economic crisis. Keynes put forward that full employment level is not to be achieved by the spontaneous action of capitalism, therefore it's necessary for the government to take actions and intervene economy.
Our country has been transferring from a plan economy to a market economy, and the leaders are faced with big challenges. Since market has been turned out an effective way to enhance economic development in China, (look at the great changes taken place in this country since its reform and open policy at work), what the policy-makers need to do is amend their Chinese-characteristic market economy. Obviously, they have put great emphasis on macro control and government intervention.
The market economy model and financial capital market model we use today are borrowed from the western countries with a matured market economy. Those theories are truly perfect after a long period of amendment. But we have to ask this question: Are matured theories perfectly applied to an unmatured market, like ours? Practicing skills are not to be learned from books only. Scholars have to consider more than simply spreading knowledge. Regrettably, there seems to be a short for thinking.
Those main stream economic theories whose suitability for china is still in suspense have been making great differences in this huge market. In early 1990s, the first group of economic graduates stepped into their work positions, and that's the very time economic theories from the west found their way in china. At the meantime, a group of social elites including entrepreneur executives began to walk into the campus, receiving education on economics. More university professors are invited to firms to give lessons on economics. What had all these brought about? As we can see, Keynesianism has become, practically, a common sense in our country, which undoubtedly give those alien theories more leeway to exert influence.
I read this from an article on line. The author may be a little radical, but what he said indeed jarred on me. Ever since the Shanghai stock exchange composite index broke 2000 marks in year 2007, a number of oversea economists have begun to urge the china government to depress capital market otherwise bubbles would come into being. However, virtually all oversea economists and critics argued the government to do nothing about the long-lasting bear market from 2001, waiting for the "invisible hand" to distinguish its reasonable price. Until it fell in the value trap; the Shanghai stock exchange composite index fell to a point below 1000 marks, with all the value standards below the international matured market, those voice was still heard. We need suggestions from scholars, especially economists who are decent enough to speak for public interest not representing certain groups or self-interest.
