For a long time, mainstream macroeconomic theories have not formally included the financial system into the analysis framework. This not only caused the actual impact of the financial system on macroeconomic operations to be underestimated for a long time, but also separated the two in theory. interrelationships and mechanisms of action. Overall, neither the macroeconomic theory under the mainstream paradigm nor the macroeconomic theory under the non-mainstream paradigm can provide an overall analytical framework with consistent logic and complete theoretical foundation for financial factors in economic operation. To date, most studies on the relationship between finance and macroeconomics have failed to explicitly incorporate a complete financial system, and the impact of the financial system on the macroeconomy has only been through embedding specific financial aspects in neoclassical or New Keynesian models. Friction factors to achieve. This round of financial crisis has once again shown that the impact of finance on the real economy is crucial. Before the internal operating rules of the financial system and the endogenous mechanisms of finance and the real economy are well and fully understood, it will be difficult for macroeconomic theory to achieve breakthroughs. progress.

Simply put, current theory and reality have reached a new crossroads, and it is necessary to build a new financial theoretical framework with a more comprehensive, systematic and realistic methodology. This is all Issues that both theorists and practitioners must face and require in-depth consideration. "Big Finance" was proposed under the dual background that existing macroeconomic and financial theories are facing major flaws, and at the same time, real economic and financial development urgently needs a new methodological guidance. The core foundation of the "big finance" theory is to organically combine micro individuals and macro entities to comprehensively serve the real economy by building an efficient, stable and crisis-responsive modern financial system, thereby promoting China to become the world's "sixth core countries in a long-term cycle. The "bigness" of "big finance" appears to a large extent as a contrast with the too narrow ("small") theoretical system of the past. Past macroeconomic theories basically did not consider the endogenous impact of the financial system, and traditional financial theories also limited their research objects to micro-levels such as corporate financial management and asset pricing. This resulted in a deep rupture between the macro- and micro-levels in methodology. This ultimately led to an ideological rupture in understanding the financial system and the actual economy. Therefore, potential methodological problems are not only at the root of theoretical problems but also of practical problems. The so-called "big finance" is to truly establish a methodological outline that is consistent and scientific in theory and practice by building a general theoretical framework that unifies macro and micro, and unifies finance and the real economy. Changes in the methodological sense are fundamental and first. This is the core and essence of the "big finance" proposition.

The "bigness" of "big finance" does not lie in its largeness in form and quantity, but in its inclusiveness in concept, integrity in vision, and systematicness in methodology. Compared with traditional economic theory, "big finance" highlights three integrities: first, the entire financial system must be regarded as a unified whole, rather than narrowly considering currency and credit; second, finance and the real economy must be regarded as as a unified whole, rather than viewing the relationship between the two in isolation; third, we must view China's and global financial development as a unified whole, rather than viewing domestic financial development in a closed and static manner. Specifically, in the study of this book, the stability, efficiency and crisis control capabilities of the financial system constitute the three "basic pillars" for our analysis of the operating rules of the modern financial system, and the combination of finance and the real economy further realizes It provides a higher-level connection between financial theory and macroeconomic theory. "Big Finance" is a global proposition with universal applicability. It is not only suitable for explaining the financial development trends (including experience and lessons) of developed economies such as the United States, Europe and Japan, but also for emerging market economies represented by China. entities and developing countries. Especially after the 2008 international financial crisis, in the context of the restructuring of the global financial system, it is not only theoretically important to conduct in-depth research on the basic laws and policy practices of the development of the modern financial system based on the basic connotation of the "big finance" proposition. nature and necessity, and will help China take the lead in formulating a correct financial system framework that is conducive to establishing competitive advantages on a global scale. In view of this, under the general theoretical outline of the "big finance" proposition, we comprehensively examined the historical laws and evolutionary trends of the development of the global financial system from a long-term perspective, and determined the financial competitiveness of a country under the modern financial system. factors were systematically studied. This research lays a theoretical foundation for the comprehensive construction of a "big financial" system framework that is conducive to promoting long-term economic growth and enhancing national competitiveness.

The outbreak of this round of global financial crisis has not only put the global economy and financial system under tremendous pressure, but has also led to a crisis in economic theory. From a theoretical perspective, traditional macroeconomics fails to fully understand the financial mechanisms in macroeconomic operations. It is not only difficult to effectively explain the inherent laws of modern macroeconomic operations, but also difficult to effectively guide and form scientific policy practice. At the same time, with the reconfiguration of economic power among global powers after the crisis, the post-war global financial system centered on the United States and the dollar is facing restructuring.

In this process, in-depth research on the development laws of the modern financial system and building an efficient and stable financial system on this basis is not only realistic and urgent, but will also help China take the lead in formulating correct and effective financial systems in the 21st century. A framework for the development of the financial system that is conducive to establishing competitive advantages. In view of this, this study aims to comprehensively and in-depth study the basic laws and determinants of the development of the modern financial system from the perspective of "big finance" through systematic theoretical discussion and empirical analysis, and on this basis, comprehensively construct a system that is conducive to promoting economic growth and A modern financial system framework for financial development.

In terms of research methods, this study always adheres to the systematic interpretation, refinement and expanded application of modern economic and financial theories, attaches great importance to the combination of normative analysis and empirical analysis, the combination of qualitative analysis and quantitative analysis, and pays attention to the basis of China's national conditions make necessary revisions, expansions and extensions to the classic theory. Among the existing research, most of the foreign results focus on short-term static and comparative analysis, which are relatively scattered and unsystematic; while domestic research mainly focuses on the policy analysis level, with serious shortage of basic information and empirical analysis. Based on the dual perspectives of history and theory, this book places financial development issues in a long-term historical evolution and development process for dynamic investigation, in order to achieve the unity of historical logic and theoretical logic, and at the same time have a strong understanding of China's issues. explanatory power. From the perspective of specific demonstration methods, this study comprehensively uses economic research methods such as mathematical modeling, empirical analysis (including various panel data analysis, time series analysis, event analysis, etc.) and typical case analysis, striving to make relevant issues clear Scientific, comprehensive and systematic demonstration.

From a logical structure perspective, this study adopts a structured, hierarchical and multi-perspective analysis structure. In this structural arrangement, as the research contents advance, relevant issues are progressively demonstrated. From the perspective of the macro structure of the research, this book presents two basic analytical paths: one is a "horizontal" cross-national comparison based on the national dimension, and the other is a "vertical" period comparison based on the historical dimension. These two analytical paths run through the book "orderly" from beginning to end according to the overall structure of the book, and the corresponding normative analysis and empirical analysis gradually deepen without losing "rhythm". Overall, no matter from the perspective of argumentation method or form of expression, the entire argumentation process of this study not only conforms to the norms of modern academic research, but also has clear logic, rigorous content, clear structure, and strong argumentation. Efficiency, stability and crisis control capabilities. The "Big Finance" theory summarizes the general laws of the development of the modern financial system, which is mainly based on facts and summarized and extracted from the long-term history of most countries in the world, especially important economies. Judging from empirical facts, although many factors will affect the competitiveness of a country's financial system, the long-term historical experience of global economic and financial development shows that the core factors affecting a country's financial competitiveness can be summarized into three basic aspects, namely : Efficiency, stability and crisis control capabilities. The first two factors are the two basic pillars of financial competitiveness, while crisis response capabilities determine to a large extent the extent to which a country's financial system can return to efficiency and stability when emergencies occur. sex. In summary, efficiency determines the "vitality" of the financial system, stability determines the "elasticity" of the financial system, and crisis control capabilities determine the "tension" of the financial system. The three factors complement each other and together constitute the foundation of modern finance. The “three pillars” of system competitiveness.

The above-mentioned analysis framework of the modern financial system based on the "three pillars" mainly examines the basic elements that affect the development and changes of a country's financial system from within the financial system. This analytical framework provides us with a structured picture of the financial system itself. However, in order to understand the operation and development rules of the modern financial system from a more comprehensive and systematic perspective, the theory must be further extended to the interaction between the financial system, the real economy and macroeconomic (financial) policies, and on this basis A new theoretical synthesis is formed, which is what we define as the "big financial" system. Therefore, from a theoretical structure point of view, the overall analytical framework of "big finance" defined in this study logically follows the theoretical construction process of first deconstruction and then synthesis, from which we will see the transition from financial development to the real economy to policy feedback a complete theoretical picture. This round of financial crisis has given us basic enlightenment in three aspects: first, the nature and mechanism of financial factors in economic operation are far from being fully understood, and systemic financial risks have been underestimated for a long time; second, financial development is increasingly divorced from the real economy , the relationship and positioning between finance and the real economy need to be further clarified; third, the traditional economics framework fails to integrate macro-level and micro-level financial theories well, and there is a certain degree of cognitive defects. The proposition of “big finance” was put forward precisely under the above background.

The "big finance" proposition has three basic connotations: first, it emphasizes the systematic integration of macro theory and micro theory in financial theory; second, it emphasizes the harmonious unity of finance and the real economy in terms of financial philosophy. , and the third is to emphasize the organic combination of general laws and "national endowments" in financial practice.

Based on the basic connotation of the "big finance" proposition, China's financial development concept should focus on building the following three foundations: first, the theoretical foundation, that is, China's financial development must follow the general laws of economic and financial operations; second, The first is the value basis, that is, China's financial development must represent the core values ??of Chinese-style economic growth; the third is the practical basis, that is, China's financial development must be based on its own unique "national endowment." The organic unity of the three foundations constitutes the theoretical pillar and core value system of what we call the "big finance" proposition. "Big Finance" proposition: three major connotations China's new financial development concept: three major foundations? Systematic integration of macro-financial theory and micro-financial theory Theoretical basis: China's financial development must follow the general laws of economic and financial operations? Financial and real economy Harmonious and unified financial concept value basis: China's financial development must represent the core value concept of Chinese-style economic growth? Practical basis of the organic combination of the general laws of financial development and "national endowment": China's financial development must be based on global experience and China's most Basic national conditions Figure 2 "Big Finance" proposition and China's new financial development concept

First of all, from a theoretical basis, as a large economy with open development, the reform and development of China's financial system must be based on On the basis of scientifically summarizing the financial development experience of major countries around the world, through the systematic integration of macro and micro financial theories, we comprehensively summarize and sort out several basic laws of the development of the modern financial system, and use this as an overall blueprint and practical path design for the reform and development of the financial system. basic theoretical basis.

Secondly, from a value basis, China’s financial development must establish a basic value concept that is rooted in and serves the real economy, and promotes the long-term development of finance and the real economy by building an efficient and stable modern financial system. With the same stability and development, only by basing asset appreciation, capital accumulation and economic growth on real wealth creation can we achieve national economic rejuvenation through financial development and economic growth that benefit the people.

Finally, from a practical basis, in the context of financial globalization and world economic integration, China's financial reform and development must not only follow the general laws of economic and financial system operation, but also be based on Based on its own "national endowment", only by effectively combining the universal laws of financial development with China's specific conditions can we truly explore a financial development path suitable for China's national conditions in practice and establish an industrial model and system that is compatible with it. frame.

Overall, the above three basic principles constitute the core theoretical basis of China’s new financial development concept under opening conditions. The key point of this theoretical foundation is to comprehensively shape the overall framework of the financial system that is conducive to long-term economic development by closely integrating the validity of theory, the authenticity of value and the pragmatism of practice. First, financial development must serve economic growth and financial stability, reflecting the guarantee function; second, financial development must serve technological innovation and industrial upgrading, reflecting the development function; third, financial development must serve the rise of the country's currency and financial industries, reflecting the Support function. Based on the above strategic positioning, China's future development will present a new economic development model that is closely integrated with the financial and real economies and driven by modern technology and modern finance.

(1) Financial industry development strategy

1. Form a reasonable financial system structure from a macro perspective and promote the dynamic and balanced development of banks and capital markets: For China at the current stage, In other words, in the strategic design of the development of the financial system, the capital market cannot simply be opposed to the banking system. The development of banks and capital markets cannot be based on the premise of excluding or suppressing the development of the other. From a dynamic perspective, in a long-term institutional equilibrium, the relationship between banks and capital markets should be complementary, mutually reinforcing, and "spiral development."

2. Steadyly promote new mixed operations in the financial industry at the micro level and lay a solid industrial foundation for China’s financial development: In the context of global financial integration, the boundaries between financial institutions and financial markets Increasingly blurred, "integration" has become the common need of both parties: banking business can be extended to the financial market, and financial market products can also obtain new implementation methods through the bank platform. Facing the great development of mixed operations in the financial industry around the world, whether from the perspective of improving its own stability and efficiency or responding to increasingly fierce international competition, financial holding companies should become the key to the transformation of China's financial industry from separate operations to mixed operations. a realistic choice for industry development. As an intermediate model between mixed operations and separate operations, financial holding companies have the advantages of both mixed operations and separate operations to a certain extent, and can maintain a dynamic balance between efficiency and stability to a certain extent.

3. Complete interest rate marketization before 2017 to provide a credible monetary and financial environment for China’s financial and economic development: Without interest rate marketization, there will be no unified market and no sound monetary policy. The transmission mechanism can be described. The market basis for continuing to implement interest rate controls is getting weaker and weaker. Business competition among financial institutions and interest rate distortions in the credit market have begun to "force" interest rate market reforms. According to my country's actual situation, in the next step of reform, we can consider first selecting financial institutions with hard constraints to gradually liberalize the prices of alternative financial products, and gradually expand the range of the upper limit of RMB deposit interest rates and the lower limit of loan interest rates in a planned and step-by-step manner. Finally achieve full marketization of deposit and loan interest rates.

According to the importance of the impact, the basic path of interest rate market reform is: loans first, then deposits; long-term first, then short-term; first large-amount, then small-amount.

(2) Strategy for financial services to the real economy

1. Finance must serve the real economy: The experience of economic and financial development in various countries around the world fully shows that if the development of finance is divorced from the real economy, The excessive concentration of financial resources in virtual asset markets such as stocks, real estate, and financial derivatives is not only detrimental to industrial restructuring and sustainable economic development, but also leads to misallocation of social resources, serious asset price bubbles, and ultimately a financial crisis. and economic recession.

2. Basic principles and key areas of financial services for the real economy: On the basis of adhering to the two basic principles of financial development based on the real economy and financial innovation centered on the real economy, from the perspective of financial services serving the real economy In terms of key areas, according to the general laws of economic development and transformation in various countries around the world, China at this stage needs to insist on unifying the transformation and upgrading of traditional industries, the cultivation and promotion of strategic emerging industries, and the acceleration of the development of producer services to promote the stock adjustment of the real economy. and incremental optimization.

3. Financial support in China’s economic transformation: Overcoming the “middle-income trap”: According to the current situation and comparative advantages of China’s financial resource distribution, the basic path for financial support for the transformation and upgrading of China’s industrial structure can be along the following five lines. Development in two aspects: First, give full play to the guiding role of policy finance to provide financing for projects that have obvious positive social externalities in the process of industrial structure transformation and upgrading but commercial financial institutions are unwilling to intervene in the early stage; second, encourage and guide Commercial financial institutions, in accordance with the principles of marketization and commercial sustainability, provide all-round, multi-level and integrated credit support and financial services for the transformation and upgrading of industrial structure; the third is to develop multi-level capital markets, revitalize social capital, and through Enterprise listings (main board, second board, third board, GEM), PE, VC and other forms will increase the proportion of equity capital and accelerate capital formation; fourth, strengthen the coordination and cooperation of financial, fiscal and insurance mechanisms, and formulate policies While working together, we can effectively reduce financial risks; fifth, through the strategic use of huge foreign exchange reserve resources, allocate resources on a global scale to comprehensively enhance China's position in the global economy and industrial division of labor system.

(3) Financial opening development strategy

1. "Open protection" and "state control" simultaneously, and steadily realize capital account opening from 2015 to 2020: For China, this is To ensure financial stability in the dual context of opening up and development, we need to maintain both moderate and necessary state control. On this basis, we need to adopt a gradual financial opening approach and a prudent globalization strategy to prevent overstepping. The "matching imbalance" in the development stage and the weakening of national financial control have led to out-of-control risks. Promoting financial efficiency while ensuring financial stability through appropriate national financial control and properly grasping and controlling the opening process will not only help achieve financial efficiency, but also minimize the uncertainty in the process. and potential risks. Taking into account international experience and the domestic environment, as well as the timetable for interest rate market reform, China's capital account opening should be completed between 2015 and 2020. The time window for opening up the capital account coincides with the strategic opportunity period for China's economic development.

2. Realize the internationalization of the RMB through two "three-step" strategies and lay the monetary foundation for China's financial rise: In the long term, China should adopt two "three-step" strategies in the next 30 years. strategy to realize the internationalization of the RMB. In terms of the scope of the rise of the RMB, the first decade is "peripheralization", that is, the use of the RMB in neighboring countries and regions; the second decade is "regionalization", that is, the completion of the use of the RMB throughout Asia. ;The third decade is "internationalization", making the RMB a key currency on a global scale. In terms of the function of RMB as a world currency, the first step is "trade settlement", that is, RMB serves as an international settlement currency in trade settlement; the second step is "financial investment", that is, RMB serves as an investment currency in the field of international investment. ;The third step is "international reserveization", that is, the RMB becomes one of the most important reserve currencies in the world.