Theoretical reflection on financialization and fin...
In addition to take the production integration and trade liberalization as important symbols of economic globalization，international economics textbooks also regard financial internationalization as the other important symbol and feature of economic globalization.According to such a theoretical analysis framework，and in line with the development requirements of production integration and trade liberalization，financial internationalization and liberalization are also an inherent law and trend of world economic development.For this reason，since the 1980s，the international economics field has unanimously advocated the promotion of financial liberalization and market-oriented development，requiring the government to continuously loosen financial control，speed up interest rate liberalization reforms and ease exchange rate controls，and insisting on the mutual opening up of global financial markets to promote the integration of the business development of financial institutions.Affected by this theory and concept，developing countries have also proposed to accelerate the financial reform and opening-up characterized by “financial deepening” and financial development in response to the problem of“financial repression”.Undoubtedly，the thought of financial liberalization and the theory of financial deepening have objectively played a positive role in improving the competitive efficiency of the financial market and promoting the opening up and development of financial innovation.
However，from the development practice of financial liberalization，there are also two deep-seated problems that cannot be ignored: First，excessive financial innovation and deepening lead to the deviation of financial development from the real economy.Especially with the continuous quantification and instrumentalization of economic analysis tools such as monetary finance，financial engineering and financial instrument innovation have left the real economy and entered selfcirculation development.The global economy，particularly the developed economies，has seen a serious trend of financialization development.The development of financialization not only leads to the difficulty and complexity of macro-economic analysis and research，but also various financial instruments and derivatives emerge one after another.The financial opening-up and development and financial innovation are characterized as financialization，instrumentalization and virtualization，which eventually evolve into deep-seated problems such as financial deviation from the real economy，bubble formation and financial risks.Second，the opening-up and development of financial services is simply equated with the innovation of financial instruments and the deepening development of finance，which leads to greater difficulty in financial supervision.Therefore，how to deal with the problems of financial deepening，financial instrument innovation and effective financial supervision has become a theoretical and practical issue worthy of attention.Practice has proved that the financial internationalization，which is aimed at improving the efficiency of financial development，has also involved developing countries in this round of financial liberalization.The global contagion mechanism of financial crisis and risks has caused financial market volatility and excessive speculation of international capital，bringing serious impact and influence to almost all countries.Therefore，on the one hand，financial internationalization should accelerate the opening up and development of financial services in all countries，and improve the competitiveness and innovation ability of financial services.However，on the other hand，how to effectively prevent excessive development of financial derivatives，excessive financialization，financial deviation from the real economy and financial risks，etc.are also major issues that must be faced and considered.For this purpose，we need to rethink the financial internationalization in the process of economic globalization，especially the nature of finance and its relationship with the real economy，the relationship between financial openness and financial liberalization，as well as financial innovation and supervision and many new theoretical and practical issues.