Reflections on financial value (1): It is necessary to understand and read through the regulation logic and value in the financial field.
In people's social life today, the influence of finance is everywhere. At the same time, finance and economy are inseparable. It can be said that in the financial field closely related to everyone's life, wages, deposits, financial management and consumption are all aspects that people always pay attention to.
Although the financial atmosphere we can feel is only limited, in fact, the whole financial field is a huge management system. From a macro point of view, every adjustment is targeted, and every action has its specific significance. This is a rigorous and important field, which shows the value of finance.
The Value of Finance: Reform, Innovation, Supervision and Our Future is a financial professional reading written by Professor Huang of Peking University after carefully studying the trend, system, innovation, supervision and risk of the financial system. Knowing some financial knowledge can bring great benefits to our life.
From the industrial revolution to the information age, and then to the upcoming all-round digital process, the development of human civilization has entered a new stage, and correspondingly, the policy adjustment in the financial field is also being carried out simultaneously. Human society is a complex and changeable system, involving all aspects. The value of finance is reflected in whether it conforms to the current social form and development trend. It is no exaggeration to say that every move in the financial sector deserves our more attention.
Digital finance, innovative finance and technology and finance are very popular terms at present, which represent the trend and direction of financial development. But equally important is whether the actual development in the financial field can complement the interests of people's real life. A slight adjustment of financial policy may have a great impact on a certain department, such as the issuance of RMB, the adjustment of deposit interest rate and the change of financial payment means. Macroscopically, the adjustment of fiscal policy is real-time and will inevitably change with the actual dynamic development of society. People need constant attention to adapt to these adjustments to the maximum extent, and then change some of their ideas and thinking, and the immediate interests must be important.
Another point that needs special attention is the risk management and control of the financial sector. Especially in recent years, the downside risks of the economy have increased, and the financial sector has made much noise and little rain. Breach of contract, running away and deficit mercilessly devour ordinary people's investment and wealth management funds. The superposition of various financial risks magnifies these risks and impacts. Although this is a common phenomenon in the financial system, it is very important for people to avoid these risks and losses to the maximum extent.
In the future, the development of the financial system is characterized by diversity, the social division of labor is getting finer and finer, and people's material life is getting richer and richer, so it is particularly important to reflect the corresponding financial value. However, we must know and understand the logic and value of various adjustments in the financial field, which is the most important necessity for survival.
Reflections on the Value of Finance (II): Finance is one of the greatest economic innovations in human history.
The Central Economic Work Conference was held in Beijing from February 8, 2002 to February 8, 202 10/0. It has been pointed out that China's economy is very resilient, and its long-term positive fundamentals will not change. At the same time, China's economic development faces three major pressures: demand contraction, supply shock and expected weakening. Under the impact of the epidemic in the century, the changes in the past century have accelerated, and the external environment has become more complex, severe and uncertain. The new challenges in China's economic development are intertwined. The meeting made it clear that stability is the top priority, and striving for progress in stability shows that the top priority of economic work in 2022 is to achieve "double stability" in the macroeconomic market and the overall social situation. Therefore, 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 a country, but also closely related to our daily life, such as income growth, price level, deposit interest rate, investment return, tax policy, etc ... Why is finance important, what kind of logic does it operate, and what kind of impact does it have on the country and society?
Professor Huang of National Development Research Institute of Peking University, director of Digital Finance Research Center of Peking University and chairman of academic committee of China Financial Forty Forum will answer the above questions for readers. This book deeply analyzes the value of finance to the country, society and individuals, expounds 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 present situation and grasp the future in the era of increasingly turbulent financial tide.
This book is divided into eight chapters. The first chapter mainly analyzes and summarizes the characteristics of different stages of China's economic development. The second chapter mainly reviews the course of financial reform and development in China. The third and fourth chapters give the author's views on the direction of financial support for the real economy and the promotion of economic development by financial innovation; The fifth and sixth chapters discuss digital finance and the prediction of digital currency's future development. Finally, in the seventh and eighth chapters, we will return to financial supervision, prevention and control of financial risks and long-term experience and lessons.
From 1978, China began its economic reform planning, and we have been trying to find the most suitable financial development model for 40 years. On the one hand, we have re-established a huge financial system from scratch, from commercial banks to capital markets. On the other hand, the financial system is constantly marketized, and the role of the market is becoming more and more important from capital allocation to pricing.
Although there are many comments from outside that the reform is not thorough enough, from the results, China's financial reform has generally followed the principle of "pragmatism". Although the exploration and experiment of "crossing the river by feeling the stones" may not be thorough, it meets the needs of the times and national conditions, and the actual effect is also very good. Based on the underlying logic and background of financial operation, the author summarizes the gains and losses of China's "dual-track" financial reform in recent decades, and makes bold predictions and suggestions on the future financial development trends and risks. Finance may be one of the greatest economic innovations in human history, which makes division of labor and economies of scale possible, thus greatly promoting the process of economic development. A correct understanding of financial laws can enable us to keep up with the times and the pace of national development, understand the rapid changes in the market and gain the first-Mover advantage.
Reflections on Financial Value (Ⅲ): Value will be born if we make the best use of the situation —— Reading Night of Financial Value
After a busy week, by chance, a friend got Huang Lao's new book in the evening. After reading it in one breath, you are clear-headed and hearty-this should be the fun of talking with books.
Nowadays, experts in China's financial and economic fields may be in an excessive "inflation". In Zhihu, Bili Bili, Tik Tok and WeChat official accounts, we can see many well-founded and well-defined opinions. If I believe it all, maybe I think China will collapse and dominate the world again, and the United States will decline and rise again. Many articles cite allusions at the beginning and make a biased analysis of an event, but the conclusions and views on the problem are all platitudes. Everyone has his own reasons, even if you look carefully, it is difficult to increase your knowledge. However, many industry leaders use formulas and models very well, but they lack a clear view on the specific issues of the China issue, which makes people hard to approach.
Therefore, I was particularly surprised when I read Professor Huang's The Value of Finance. This book has just been published, and its core content is to discuss today's and future financial reform and innovation from all previous financial reforms and economic and social development since the reform and opening up. This book is based on the author's feelings and analysis of participating in farmers' unified marketing and purchase of grain in rural areas when he was young, and analyzes how countries like China have realized the rapid accumulation of our early capital through fiscal and monetary means and moderate taxation since history, and also shaped China's special financial development system. Focusing on the changes in the proportion of different subjects in the current financial system, the book strings together various phenomena that people can't directly understand in the financial market since the reform and opening up, and provides a convincing explanation framework. Combined with the cultural and national characteristics of China, from my personal point of view, it is always a kind of luck to read such financial books with both macro vision and theoretical basis, and paying more attention to practical problems. I have a feeling of seeing the clouds and seeing the game between management and development behind the seemingly illogical phenomenon, and I have to admire the author's profound insight and innovative ingenuity.
In the book The Value of Finance, we can all see Huang Lao's deep pride and long-term expectation for the development of digital finance in China. Today, Japanese are still using cash, Americans are still writing checks, and China people are already using mobile payment. Why can our digital finance develop by leaps and bounds? Perhaps you have read the professional analysis of many authors, and in this book, Huang Lao uses the example of "repairing the Great Wall and the steam engine" to illustrate that the essence of financial model reform is the realistic requirement of economic growth increment, which also explains why as a big country that has long implemented financial repression policies, a seemingly long-term conservative country and a "beginner" in the financial field, it can walk in the forefront of the world in the process of transforming the current economic development mode and trigger a profound social revolution because It is precisely these new means that can solve the key problem of inclusive finance's landing, that is, how to effectively acquire customers and set accurate interest rates, which is essentially a risk pricing problem (that is, the familiar application of big data, cloud computing and the accumulation of our daily behaviors in online consumption). At this moment, I feel that what I am reading is not a financial book, but a book "Guns, Bacteria and Steel in China", which examines the history and present of China from a financial perspective.
This is by no means the only highlight of this book. For example, the research on the orientation of China's financial supervision institutions and the "policy inclination" based on institutional interests, the "cautious optimism" of digital currency, and the analysis and suggestions on the characteristics of "platform economy and monopoly" can all be cited, and the combination of Chinese and Western can be said to be a masterpiece of understanding the stage of China's financial development and understanding policies.
Finally, Professor Huang himself is also a very interesting existence. His lectures and courses can be found in the mile. He quotes classics in class, which is very beautiful. I also sincerely remind everyone that "you can't make money learning this." Even just to "spit out" that too many people came, I specially gave two lectures on Wall Street with too many people and the subsequent economic crisis, which made it difficult for people to regard this course as a rigorous teaching in Tsinghua University, but to share their experiences and opinions with their students like a gentleman. Modest gentleman, gentle as jade.
I'm a non-financial professional, so it's inevitable that there are omissions. It's really an honor to recommend this book. Although this book is fluent in writing and involves a lot of detailed explanations of knowledge background, its content is mostly speech conversion, with some repetition between chapters and a slightly weak system. Fortunately, as long as you go deep, you can know its essence. I hope to read often and always be new, and I strongly recommend it.
Reflections on Financial Value (IV): What is finance?
The book The Value of Finance introduces the present and future of finance as a discipline and practical tool around what is the answer to finance, thus clarifying the position and possible problems of finance in contemporary social life, and finally clarifying the value of finance. In fact, this book is a collection of speeches, comments and other articles by the author in different periods, and there are inevitably overlaps between them, but the overlapping problem is precisely the most urgent and intractable problem in economic life under the theme of "finance". Therefore, in general, this book is helpful for beginners to understand what finance is and for participants in economic life to grasp the important areas of economic life development in contemporary China.
In real life, the relationship between economy and finance is very chaotic. Are they parallel or subordinate? In fact, understanding this problem is also a necessary link to understand what finance and even financial value are to some extent. Economics studies how to realize the effective allocation of resources, while finance focuses on how to realize the effective allocation of capital. In this sense, finance belongs to the branch of economy. However, with the development of economy, industrial capital, the initial target of financial services, gave way to financial capital. Although finance still solves the problem of the effectiveness of resource allocation, the resources here have been transformed from the initial industrial capital into financial capital with interest-bearing nature, and finance has gradually begun to break away from the economy and become a more (even) vital field. In fact, this change is not uncommon in the economy. Similar to finance and economy, foreign exchange and international trade have also experienced similar development, which naturally led to the evolution of international trade and international finance to the international economy. Going back to this book, it is this change in the relationship between finance and economy that leads to the first question often mentioned in this book: Does finance serve the real economy? This problem is not unique to China's economy. In fact, after the subprime mortgage crisis in 2008, the whole world is rethinking the relationship between finance and economy. For a time, words such as "hollowing out the industry", "divorced from reality" and "disintermediation" frequently appeared in major media reports, which caused an upsurge of financial discussion among ordinary people. But as this book says, whether finance serves the real economy can be summarized as a more specific problem in China at this stage, that is, it is difficult and expensive for enterprises (especially small and micro enterprises and private enterprises) to raise funds. This is the second question raised by this book to understand what finance is.
To understand this problem, we need to go back to the financial system of developing countries. The problem of financial repression put forward by Professor McKinnon is a common problem in the financial system of developing countries. In order to solve this problem, all developing countries have carried out financial liberalization characterized by financial deepening or financial development, and China is no exception. Of course, as this book says, financial repression has played a greater role in China's economic development since the reform and opening up and even at the beginning of 2 1 century. However, the contemporary economic development law that financial capital precedes industrial capital and financial innovation guides industrial innovation determines that China's future economic development needs financial development and financial innovation. It is the key to solve the two major problems of difficult and expensive financing for enterprises.
The solution of these two problems depends not only on the deepening of reform, but also on financial innovation. Thus, this book deeply discusses the latest performance of the deepening development of China's financial system at this stage. On the one hand, it is to deepen the reform of financial marketization, on the other hand, it is to adhere to the development of financial innovation based on digital finance. Although these nouns seem awkward, they actually happen in our lives. This may be the charm of modern finance: it can be a bloodbath in the seemingly distant asset market or a convenient mobile payment. Of course, it is precisely because modern finance is so close to ordinary people and its influence is so huge that the importance of financial supervision is increasing day by day. It is the interaction between financial innovation and financial supervision that promotes the overall development of the financial system, and the benign interaction between them is also the key to the rational development of the financial system.
So far, around what is finance, especially the development history, present situation and future of China's financial system, the author has shown us a comprehensive and vivid picture. Back to the original question, what is finance? Through reading the whole book, we can find that the financial system at the beginning of its birth serves the economic system and is the key link to effectively allocate resources for limited economic activities; Today, this role is equally important, but with the increasing independence and creativity of finance itself, finance is becoming an independent link. The change from subordinate relationship to parallel relationship makes us pay more attention to the overall influence of financial system and its interaction on social life. '