The Value of Finance (1): Understand and read through the financial sector to adjust the logic and value of where it is necessary to survive
In today's people's social life, the influence of finance is ubiquitous, and at the same time, finance and the economy is inextricably linked, so it can be said that everyone's life is closely related to the field of finance, wages, deposits, financial management, consumer spending, etc. are the parties that people are always concerned about. The first thing you need to do is to get your hands on a new pair of shoes or boots.
Although, the financial atmosphere that everyone can feel is only a limited perception, but in fact, the whole financial field is a huge management system, from the macro to see the trend, from the micro to see the logic, every adjustment is targeted, every action has its specific meaning, which is a rigorous, important field, highlighting the value of finance.
The Value of Finance: Reform, Innovation, Regulation, and Our Future, written by Peking University professor Huang Yiping, is a specialized book on finance and economics, written after a careful study of the trends, systems, innovations, regulation, and risks of the financial system. Understanding financial literacy can be of great benefit to our lives.
From the industrial revolution to the information age, and then to the upcoming all-round digitalization process, the development of human civilization has entered a new stage, corresponding to the financial field of policy adjustments are also in synchronization. Human society is a complex and changing system, associated with all aspects of the value of financial embodiment, focusing on whether the current social form and development trends, it is no exaggeration to say that every move in the financial sector, it is worthwhile for us to pay more attention.
Digital finance, innovative finance, and technology finance are very popular terms that represent the trend and direction of the financial sector. But equally important is whether the actual development of the financial sector can be complementary to the interests of people's real lives at the moment. A slight adjustment of a financial policy may have a huge impact on a certain sector, for example, the issuance of RMB, the adjustment of deposit interest rates, the change of financial payment means, etc. At the macro level, the adjustment of financial policy is real-time, inevitably accompanied by the actual dynamic development of society and change, people need to pay attention at all times, in order to maximize the adaptation to these adjustments, and then change some of their own ideas and thinking, personal interests must be important.
Another point that requires special attention is the risk management and control of the financial sector, especially in recent years, the risk of economic downturn has increased, the financial sector of the explosion of thunder everywhere, defaults, runaway, shortfalls, mercilessly devouring the general public's investment and financial funds, the superimposition of various types of financial risks to amplify the risks and impact, which, although it is a common phenomenon in the financial system. Being able to maximize the avoidance of these risks and losses is crucial for people.
In the future, the development of the financial system is characterized by diversity, the social division of labor is becoming more and more detailed, and people's material life is becoming more and more rich, corresponding to the value of the financial embodiment is particularly important. However, it is important to understand and read through the logic and value of various adjustments in the financial field, which is the most important necessity for survival.
The Value of Finance (2): finance is one of the greatest economic innovations in the history of mankind
The Central Economic Work Conference was held in Beijing from December 8 to 10, 2021, which pointed out that China's economic resilience is strong, and the fundamentals of the long term good will not change. At the same time, China's economic development is facing demand contraction, supply shocks, the expectations of the triple pressure. Century epidemic under the impact of a century of change to accelerate the evolution of the external environment is more complex and severe and uncertain. China's economic development encountered new challenges intertwined and superimposed, the meeting made it clear that the word "stability", seeking progress while maintaining stability, showing that the top priority of the economic work in 2022 is to realize the macroeconomic plate and the social situation "double stability". To this end, it is necessary to maintain the continuity, stability and sustainability of the policy.
The stability and development of the financial market is not only related to the success or failure of the country, but also to the daily life of each one of us, income growth, price levels, deposit rates, investment returns, tax policy, etc. ...... Why is finance important, and what kind of logic does it run, and how does it affect the country and society? The first time I've seen this, I've seen it in the past.
Huang Yiping, professor of the Jinguang Chair at the National Development Institute of Peking University, director of the Digital Finance Research Center at Peking University, and chairman of the Academic Committee of the Forum of Forty People in Finance of China, has written a new book called "The Value of Finance" that will answer these questions for readers. The book provides an in-depth analysis of the value of finance to the country, society and individuals, describes the reform, innovation, risk control and supervision of the financial system, and analyzes the future development trend of finance, so that we can better understand the current situation and grasp the future in the era of increasingly high waves and winds of the financial tide.
The book*** is divided into eight chapters, the first of which analyzes and summarizes the characteristics of different stages of China's economic development; the second focuses on reviewing the history of China's financial reform and development; the third and fourth chapters give the author's viewpoints on the direction of financial support for the real economy as well as financial innovation to promote economic development; the fifth and sixth chapters discuss the future development of digital finance and digital currencies; and finally the seventh and eighth chapters discuss the future development of digital finance and digital currencies, and predict the future development of digital currencies. The third and fourth chapters give the author's point of view in the direction of financial support for the real economy and financial innovation for economic development; the fifth and sixth chapters discuss the future development of digital finance and digital currency; and finally the seventh and eighth chapters return to financial regulation and the prevention and control of financial risks and lessons learned over time.
Since 1978, when China began its economic reform program, we have been trying to find the most suitable model for financial development for forty years. On the one hand, we have re-established a huge financial system from almost nothing, from commercial banks to the gradual establishment and improvement of the capital market; on the other hand, the financial system has also been continuously marketized, from capital allocation to pricing, the role of the market is becoming more and more important.
Although the outside world has a lot of reform is not thorough evaluation, but from the results of China's financial reform in general to follow the "pragmatic" principle. The exploration and experimentation of "crossing the river by groping the stones" may not be thorough, but it is in line with the needs of the times and the national situation, and the actual results are also very good. The author summarizes the gains and losses of China's "dual-track" financial reforms over the past decades in terms of the underlying logic of financial operations and the context of the times, while making bold predictions and recommendations for future financial development trends and risks. Finance may be one of the greatest economic innovations in the history of mankind, which makes the division of labor and economies of scale possible, thus greatly promoting the process of economic development. Correct cognition of the rules of finance allows us to keep pace with the times and national development, gain insight into the instantaneous changes in the market, and achieve a first-mover advantage.
"The value of finance" after reading (3): because of the situation, the value of *** birth - night reading "the value of finance"
In the routine after a busy week, by chance a friend of chance, I got the old man Huang's this new book at night, after a breath of reading, but the mind is clear, sound!
This is the joy of conversing with a book.
Nowadays, Chinese experts in the financial and economic fields may be in a state of excessive "inflation". In Zhihu, B station, shaking voice, public can see a lot of well-argued, righteous point of view, if I believe, perhaps I think China is going to collapse, and to dominate the world, the United States is going to fall down the recession, and to rise. Many articles begin with quotes from scripture and a biased analysis of an event, while the conclusions and opinions on the issues are clichés, each with their own reasoning, although it is hard to add your own insight when you look closely. However, many of the industry's bigwigs, who use formulas and models extremely well, can lack clear insights into the specifics of China's problems, making it difficult to get close to this.
So I was pleasantly surprised when I read Prof. Huang Yiping's The Value of Finance. This book has just been published, the core content is from the reform and opening up since the successive financial reform and economic and social development, to explore today and the future of financial reform and innovation. The book starts with the author's feeling and analysis of participating in the farmers' grain marketing and purchasing in the countryside when he was young, and analyzes how China, as a country, has realized the rapid accumulation of capital in our early days and shaped China's special financial development system by means of financial and monetary means, and by gentle taxation since the beginning of history. The whole book is based on the change of the proportion of different subjects in the current financial system, and links up the phenomena in the financial market since the reform and opening up, which are not directly understandable, and provides a persuasive explanatory framework, which can also be combined with China's culture and national characteristics. From my personal point of view, this kind of macro vision, but also has a theoretical basis, more concerned about the reality of the financial readings in today's able to read is always a kind of luck, read quite a sense of clouds to see the sun, to see the seemingly illogical phenomena behind the existence of the management and development of the game, have to admire the author's deep insight, innovation and ingenuity.
Throughout the book "The Value of Finance", we can see Huang's deep pride in the current development of digital finance in China and long-term expectations. Today's Japanese are still using cash, Americans are still writing checks, while the Chinese are already using mobile payments. Why can our digital finance develop in such leaps and bounds? Perhaps you have read many authors of professional analysis, and in this book, Huang used the example of "building the Great Wall and the steam engine" to explain the nature of the reform of the financial model is the reality of the requirements of the incremental economic development, which also explains why, as a large government that has long been implementing financial inhibition policy, a seemingly long-term conservative country, the financial field of the "starter", in the process of the current transformation of the mode of economic development, can walk in the forefront of the world position and trigger a profound social revolution, this is because our society has a new incremental need for new incremental changes, and therefore guided the generation of new financial instruments, precisely these new instruments can solve the financial inclusion landing The key problem, that is, how to effectively acquire customers, and set accurate interest rates, is essentially the problem of risk pricing (it is the familiar big data, the application of cloud computing and the accumulation of our daily behavior of daily consumption in the network). In this moment, I felt I was not reading a financial book, but a Chinese "Guns, Germs and Steel", which looks at China's history and present from a financial perspective.
This is not the only thing that makes this book great, such as the research on the position of our financial regulators and their "policy preferences" in terms of institutional interests, the "cautious optimism" on digital currencies, the "platform economy and monopoly", the "cautious optimism" on the "platform economy and monopoly", and the "cautious optimism" on the "platform economy and monopoly". For example, the study of the position of our financial regulators and their "policy preferences" in terms of institutional interests, the "cautious optimism" of digital currencies, and the characterization and recommendations of the "platform economy and monopoly" are all well-written with a combination of Chinese and Western references, and can be said to be a good work for understanding the stage of China's financial development and policy.
Finally, Prof. Huang Yiping himself is also a very interesting presence, his lectures and courses can be found on the B site, where he quotes from the classics, from the past and the present, which is very nice to see. He also sincerely reminds everyone that "you can't make money by learning this". Even just to "spit" a little too many people came to talk about Wall Street twice too many lectures and after the economic crisis, so that it is even difficult to see this course as a rigorous teaching in Tsinghua University, but rather like a gentleman with his students to share their own experience and insights. A modest gentleman, gentle as jade.
I do not specialize in finance, it is inevitable to miss a million, recommend this book is really a personal pleasure. This book is fluent, involving knowledge of the background of more detailed explanation, but the content of the speech is mostly transformed, there is some repetition between the chapters, the system is a little weak. Fortunately, as long as in-depth, can know its meaning. I hope to always read new, highly recommended.
The Value of Finance (4): What is Finance
The Value of Finance is a book centered around answering the question of what is finance as a guide, introducing finance as a discipline, as a realistic tool for the present and future, thus clarifying the status of finance in contemporary social life and the possible problems that may exist, and ultimately clarifying the value of finance in the question. The whole book is actually a collection of the author's speeches, comments and other articles from different periods, which inevitably overlap with each other, but the overlapping issues are precisely the most urgent ones under the theme of "finance", which is also the toughest problem in economic life. Therefore, on balance, this book is useful for beginners to understand what finance is, and for participants in economic life to grasp the important areas of development of contemporary economic life in China.
The two concepts of economy and finance have a confusing relationship in real life; are they side by side or subordinate? In fact, understanding this issue is to a certain extent a necessary part of understanding what is financial and even financial value. Economic research is how to realize the effective allocation of resources, and financial attention is how to realize the effective allocation of capital. In this sense, finance is a branch of the economy. But with the development of the economy, the object of the initial financial services, that is, industrial capital is located in the financial capital, although the financial still solve the problem of the effectiveness of resource allocation, but here the resources have been transformed from the initial industrial capital to itself, that is, with the nature of the interest-bearing financial capital, finance gradually began to detach from the economy to become a (or even say) more vitality in the field. This change is not uncommon in the economy, similar to the financial and economic, foreign exchange and international trade has undergone a similar development, the natural evolution of international trade and international finance in the international economy. Return to the book, it is the financial and economic relationship between this change, there is a book frequently mentioned in the first question: whether the financial services in the real economy. This problem is not unique to our economy, in fact, in 2008 after the subprime crisis, the world is reflecting on the relationship between finance and the economy, a period of time, "industrial hollowing out", "deconcentration", "disintermediation Words such as "industrial hollowing out", "deconcentration" and "disintermediation" have frequently appeared in the major media, causing a boom in the discussion of finance among the general public. But as this book says, whether finance serves the real economy, at this stage in China can be summarized as a more specific one, that is, enterprises (especially small and medium-sized enterprises, private enterprises) financing difficulties and financing expensive problems. This is precisely the second issue raised by this book for understanding what finance is.
In order to understand this problem, we need to go back to the financial system of developing countries, Professor McKinnon put forward the problem of financial inhibition is the general problem of the financial system of developing countries, in order to solve this problem of various developing countries have carried out to financial deepening or financial development characterized by financial liberalization, China is no exception. Of course, as stated in this book, the role of financial inhibition on China's reform and opening up since the beginning of the 21st century and even to the economic development of the role played by the benefits outweigh the disadvantages. But the contemporary economic development law that financial capital precedes industrial capital and financial innovation leads industrial innovation determines the need for financial development and financial innovation in China's future economic development. To solve the two problems of enterprise financing difficulties and financing is the key.
The solution to these two problems depends on the deepening of the reform and the need for financial innovation. The book thus delves into the latest manifestations of the deepening of the financial system at this stage of development in China. On the one hand, it is to deepen the financial market-oriented reform, on the other hand, it is to adhere to the financial innovation and development mainly in digital finance. Although these terms seem to be rather tongue-in-cheek, it is actually happening in your life and mine. This may be the charm of modern finance: it can be the seemingly distant and bloody storm in the asset market, but also the convenient mobile payment. Of course, it is also because modern finance is so close to the average person, and the scale of its impact is so large, that financial regulation is becoming increasingly important. It is the interaction between financial innovation and financial regulation that fuels the overall development of the financial system, and the positive interaction between the two is the key to the rational development of the financial system.
At this point, the authors give us a comprehensive and vivid picture of the history, status, and future of the development of the financial system, especially in China, centering on what is finance. Back to the original question, what is finance. Read the whole book, we can find that the birth of the financial system at the beginning of the service to the economic system, is the economic activity is limited by the effective allocation of resources of the key link; nowadays this role is equally important, but the financial independence and creativity of the financial itself continues to strengthen, finance is also increasingly becoming an independent link. From the subordinate relationship to the parallel relationship of the conversion, let us pay more attention to the financial system, but also more attention to the interaction between the two on the overall impact of social life.''