中國(guó)金融出版社Chapter1TheOriginandDevelopmentofFinanceandPublicFinanceLesson3Thecontents,perspectivesandmethodsofpublicfinanceLesson2TheOriginandDevelopmentofFinancialTheory

Lesson1TheOriginandDevelopmentofFinance

2023/3/162中國(guó)金融出版社Inthischapter,studentsarerequiredtomasterthefinancialoriginanddevelopment,aswellasfinancialnature,characteristicsandconcepts.TheyshouldunderstandtheevolutionofthefinancialtheoryinChinaandtheWest,andshouldbefamiliarwiththecontent,perspectivesandmethodsofstudyingPublicFinance.LearningObjectivesLearningObjectives2023/3/163中國(guó)金融出版社Lesson1TheOriginandDevelopmentofFinanceⅠ、TheOriginofFinance(ⅰ)

TheProcessofFiscalOriginSincethen,duetotheamountofunevenprivatepropertyoccupiedbypeople,thedivisonbetweenrichandpoorisgraduallyintensifying,andsocietyasawholeissplittingupintotwogreatclassesdirectlyfacingeachother---slavesandslaveowners.

Inordertoconsolidateitsdominance,protectitsvestedinterestsandsuppresstherevoltoftheslaves,theslave-ownerclassestablishedmilitary,police,courtsandprisonsandotherviolentgoverninginstitutions,whichmarksthebirthofslave-owner’srevolt.2023/3/165中國(guó)金融出版社Lesson1TheOriginandDevelopmentofFinanceⅠ、TheOriginofFinance(ⅰ)

TheProcessofFiscalOriginState,asanadministrativeorganization,needstoconsumesomephysicalmaterialstomaintainitsownexistenceandperformitsfunctions,,althoughitdoesnotengageinproducingthephysicalmaterialsinitselfanditdoesnotdirectlycreatewealth.Thus,countrycompulsivelyandgratuitouslypossessespartofthesocialproductstomeetitsneed,relyingonitsownpoliticalpoweraswellastheuseoffaxesandotherforms.

Inthisway,inthedistributionofthesocialproducts,thedistributionofthesocialproductsparticipatedbycountrywithitsownpoliticalpowerisindependent,whichiscalledfinancialallocation.2023/3/166中國(guó)金融出版社Lesson1TheOriginandDevelopmentofFinanceⅠ、TheOriginofFinance(ⅱ)TheConditionsofFinancialOriginFromtheabove-mentionedprocessitcanbeseenthatthegenerationofthefinanceneedstomeettwoconditions:oneistheeconomicconditions,theotheristhepoliticalone.Economicconditionsrefertothematerialbasisofgeneratingfinance.

Ifthelevelofproductivityinasocietyisextremelylow,thereisnosurplus,thepossibilityoffinancialgenerationdoesnotexist.Onlywhentheproductiveforcesreachacertainlevel,andthesurplusproductsemerge,thematerialbasisoffinancialgenerationcanbeproduced.2023/3/167中國(guó)金融出版社Lesson1TheOriginandDevelopmentofFinanceⅠ、TheOriginofFinance(ⅱ)TheConditionsofFinancialOriginObviously,financeisnotonlyahistoricalcategory,meanwhile,itisalsoaneconomiccategoryandevenapoliticalcategory.2023/3/169中國(guó)金融出版社Lesson1TheOriginandDevelopmentofFinanceⅡ、TheDevelopmentofFinanceFinanceemergesfromtheemergenceofstate,anditdevelopswiththedevelopmentofstate.Itgoesthroughslavesociety,feudalsociety,capitalistsociety,andsocialistsocietyinsuccession.Correspondingly,formingintoslaveryfinance,feudalismfinance,capitalistfinanceandsocialistfinancewhichprovideservicestostatepowerwithdifferentsocialformations.2023/3/1610中國(guó)金融出版社Lesson1TheOriginandDevelopmentofFinanceⅡ、TheDevelopmentofFinanceIndifferenthistoricalperiods,finance,asthecountry'sallocation,isaccompaniedwiththedevelopmentofcommoditymonetoryeconomyandthesocialprogress,anditsdistributionformationexperiencestheconversionfromphysicalformtocurrencyform.

Theformofitsincometransitsfromtribute,taxesandgovernment-industry-basedincometotaxes,bondsandevencurrencyissue;itsexpenditurefocusisalsoorientedfromworship,wars,theroyalfamilies,governmentpensionsandotherstoregimeconstruction,economicdevelopment,culture,educationandtechnologyaswellassocialsecurity.2023/3/1611中國(guó)金融出版社Lesson1TheOriginandDevelopmentofFinanceⅢ、TheNatureandCharacteristicsofFinance(ⅰ)ThemainbodyoffinancialallocationisstateorgovernmentTheallocation,onthepremiseoftheexistenceofstate,isintensivelydistributedinthewholesocietybythegovernmentandismadebypoliticalenforcementofthecountry,sostateisthemainbodyoftheallocation.

Butthemainbodyoftheotherdistributionformsuchasbankcreditallocation,distributionofcorporatefinanceandpricedistributionisabank,anenterpriseorbuyersorsellersofbothexchangers,andtheallocationundertheguidanceofthestateisfinancialallocation.2023/3/1613中國(guó)金融出版社Lesson1TheOriginandDevelopmentofFinanceⅢ、TheNatureandCharacteristicsofFinance（ⅱ）Theobjectoffinancialallocation(thatis,target)issocialproductsSocialproductsrefertothesumofthegoodsandservicesproducedbytheworkersinacountry,duringagivenperiod(usuallyoneyear),anditsgeneralpriceissocialproductsvalue.2023/3/1614中國(guó)金融出版社Lesson1TheOriginandDevelopmentofFinanceⅢ、TheNatureandCharacteristicsofFinance（ⅱ）Theobjectoffinancialallocation(thatis,target)issocialproductsAccordingtoMarxistEconomicTheory,anysocialproductconsistsofthreeparts,thatis:thepartoftheproductionvaluetointheprocessofcompensatingfortheproductionhasconsumed(c);thevaluepartworkerstocreatefortheirown(v);partofthevaluecreatedforsocietybyworkers(M).Amongthem,theconsumedproductionvaluealsoincludescurrentassetvalues??andfixedassetsvalueastwoparts,theconsumedvalueoffixedassetsisreflectedtoextractthedepreciationoffixedassets.2023/3/1615中國(guó)金融出版社Lesson1TheOriginandDevelopmentofFinanceⅢ、TheNatureandCharacteristicsofFinance（ⅲ）ThepurposeoffinancialallocationistomeetthefinancialneedsthatstateorgovernmentachieveitsfunctionsStatefunctionssuchasconsolidationofpoliticalpower,economicdevelopment,promotingthepeople'slivelihoodprogress,etc.,allbelongtosocialandpublicneeds.Thedirectpurposeoffiscalallocationistoachievethestatefunctions,andtheindirectpurposeistomeetsocialandpublicneeds.Inasense,thestateandfinanceisinterdependent.Nocountry,therewouldbenofinance;andnofinanceprovidingfiscalresources,thestate'sfunctionswouldbedifficulttoachieve,itisdifficulttomeetthesocialandpublicneeds,thestateitselfisdifficulttosurvive.Because"taxationisthemilkingmothertofeedthemachineryofgovernment",“taxationistheeconomicfoundationofthemachineryofgovernment."whethertoconsolidatepoliticalpoweroreconomicconstructionornot,asthecountry'srevenueandexpenditureactivities,achievingthegovernmentfunctionsdependsonfinancialresourcestoprovide.

2023/3/1617中國(guó)金融出版社Lesson1TheOriginandDevelopmentofFinanceⅣ、TheConceptofFinance

"Finance"ispartofforeignlanguage.Accordingtoresearch,thewordFinanceinthe13-15centuryAD,originatedintheLatin,anditsmeaningisthecurrencytopay.Inthelate16thcentury,theFrenchstatesmanBoudininhisbook"Republicofsixspeakers",withthewordFinanceanditiswritteninFrenchFinancesfromtheLatinFinare,specificallyreferstorevenueandpublicfinanceactivities.Tothe18thcentury,thefamousBritishrepresentativesofclassicalpoliticaleconomyAdamSmithusedFinancemanytimes,initsmasterpiece,thebook"Thenatureandcausesofnationalwealthofresearch".Until1892,BastableexpressedtheconceptoffinancewithPublicfinance(themeaningispublicfinancesinChinese).

2023/3/1618中國(guó)金融出版社Lesson1TheOriginandDevelopmentofFinanceⅣ、TheConceptofFinanceAfterthefoundingofnewChina,althoughtheformerSoviettextbookswereintroducedin,butitisforthefinancialunderstandingoftheconceptisnotconsistent.AtthattimetheFinancialdefinitionsTherearetwomainarguments:First,thatthefinancialcapacityofastateasthemaindistributioncarriedout;thesecondisthatfinanceisthestate'seconomicactivity.AfterthefoundingofnewChina,althoughthetextbookoftheformerSovietUnionwasintrducedintoChina,peoplewereinconsistentinunderstandingtheconceptoffinance.Atthattimeasforthedefinitionoffinance,thereistwomainarguments:Thefirstisthatfinanceistheallocationbasedonthecountry;thesecondisthatfinanceiseconomicactivitiesofthecountry.2023/3/1619中國(guó)金融出版社Lesson2TheOriginandDevelopmentofFinancialTheoryⅠ.China’sancientfinancialthought（?。㎜ightTaxPolices

LighttaxpolicyisconsideredtobeamorecommonpolicyinthehistoryofChina’sfinancialthought.Economicthinkersofthepastgenerallybelievethatthefinancialpolicyoflighttaxpolicyisnotonlybeneficialtoeasingupsocialconflicts,butalsofavorableforrecoveryanddevelopmentofsocialeconomy.Forexample,inWesternZhouDynasty,ZhouGongadvocatesthattherulersshould“bediligentinworkandmakepeoplericher”

;inSpringandAutumnperiod,GuanZhongarrangesthefinanceaccordingtotheviewthat“thefirstprincipleinrunningastateistoenrichthepeople”;2023/3/1621中國(guó)金融出版社Lesson2TheOriginandDevelopmentofFinancialTheoryⅠ.China’sancientfinancialthought（ⅰ）LightTaxPolicesConfuciusisagainsttyrannyandisinfavorof"grabbingtheirthin";Menciusbelievesthat"easytoraisetheirfields,theirthintaxgrabbing"istheprimaryfactorinenrichingpeople;LiuYaninTangDynastywarnshiskingto"financialsupporttopeopleandoftenforthefirst";WangAnshiinNorthernSongthinksthat,financingshouldbedonewith"becauseofthepoweroftheworldtotheworld'sfinancialhealth,totaketheworld'swealthfortheworldofmoney";WeiYuaninQingDynastysaidmorefiguratively,hesaid,"goodpeopleareendowed,whichisalmostlikeplantingwillow,itsbranchesluxuryingandcultivatingitsroot;thosewhoarepoorlyendowedpeoplelikecuttingleek,cuttingonastretchnotmorethanexhausted.2023/3/1622中國(guó)金融出版社Lesson2TheOriginandDevelopmentofFinancialTheoryⅠ.China’sancientfinancialthought(ⅱ)"Livingwithinone’sincome"and"Livingoutofone’sincomewithinsystem"financialthinkingThisisthethetwoopposingviewsconcerningwithfiscalrevenueandexpenditurearrangementsinthehistoryofChina'sfiscalthought.

（ⅲ）Financial

thinking

IncreasingincomeandreducingexpenditureTheideaadvocatedbasedonthedevelopmentofproduction,toopenfiscalsources,moderatetaxes,andenrichthestateanditspeople.2023/3/1623中國(guó)金融出版社Lesson2TheOriginandDevelopmentofFinancialTheoryⅡ.

ContemporaryFinancialTheoryoftheWest(ⅰ)thefinancialthoughtsofmercantilismandphysiocracyMercantilismoriginatedinEnglandofthemid-16thcentury,andprevailedinthe17thcentury.Itisbelievedthatacountry’seconomydependsontheamountofgoldinthecountry,thatthegovernmentshouldinterveneprivateeconomicactivitiesbyactivelyapplyingvariousinstrumentsincludingfinancialmeans,inparticular,tariffpolicyshouldbeusedtoencourageexportstoprotecttheirtradeandtoexchangemoregoldandsilver,accumulatingmonetarywealth.2023/3/1625中國(guó)金融出版社Lesson2TheOriginandDevelopmentofFinancialTheoryⅡ.

ContemporaryFinancialTheoryoftheWest(ⅰ)thefinancialthoughtsofmercantilismandphysiocracyPhysiocracyoriginatedinFranceofthe18th,advocatinglaisser-faireandagainstnationalintervention.

Physiocracyshiftedfromthecirculationfieldsintotheagriculturalproductionfieldintheorystudy,andthoughtthatagricultureistherealsourceofmaterialwealth,onlydevelopingagriculturalproductionmakingthefinancialresourcesthrive.

Intaxation,

itstronglyadvocates“singlelandtax”,andthelandlordoccupying“pureproduction”takesthewholetaxburden,andmeanwhilecancelsothertax.2023/3/1626中國(guó)金融出版社Lesson2TheOriginandDevelopmentofFinancialTheoryⅡ.

ContemporaryFinancialTheoryoftheWest（ⅲ）ModernfinancialtheoryoftheWest2.thefinancialtheoryofMonetarism,Supply-sideEconomicsandRationalExpectationSchoolItmainlycontainsmonetaryschool,supply-sideeconomicschoolandrationalexpectationschool.Theybelievethatalarge-scalenationalinterventiontoeconomystiflesthevitalityofmarketeconomy,resultinginthe“stagflation”situationin1970’s.2023/3/1629中國(guó)金融出版社Lesson2TheOriginandDevelopmentofFinancialTheoryⅡ.

ContemporaryFinancialTheoryoftheWest（ⅲ）ModernfinancialtheoryoftheWest3.thefinancialtheoryofPublicChoiceSchool(1)Clearlydefinedpropertyrightsofpublicgoods.(2)Withinthepublicsectorandbetweenthesectors,competitionmechanismisintroduced,toreconstructofficialsincentives,accordingtomarketrulestoorganizetheproductionandsupplyofpublicgoods,andtorestraintgovernment’srevenueandexpenditure.

(3)Redesignofpublicgoodspreferencesdisplaymechanism,andmakevotersshowtheirpreferencesascloselyaspossible.2023/3/1630中國(guó)金融出版社Lesson2TheOriginandDevelopmentofFinancialTheoryⅡ.ContemporaryFinancialTheoryoftheWest（ⅲ）ModernfinancialtheoryoftheWest4.thefinancialtheoryofneo-Keynesianeconomics(1)Emphasisonstartingfrommicroaspect,andillustratingtheimplementationofmarketmechanism.(2)Emphasisonthenecessityofthegovernmentinterveningeconomy.2023/3/1631中國(guó)金融出版社Lesson2TheOriginandDevelopmentofFinancialTheoryⅢ.

ContemporaryFinancialTheoryofChina（?。﹖hetranslationstage(about1900—theearly1950’s)1.thelateQingDynasty2.theperiodofBeiyangGovernment3.theperiodofNanjinggovernment2023/3/1632中國(guó)金融出版社Lesson2TheOriginandDevelopmentofFinancialTheoryⅢ.

ContemporaryFinancialTheoryofChina（ⅱ）theinitialstage(1950’s—1964)（ⅲ）themutualstage(1980’s—theearly1990’s)

（ⅳ）thedevelopmentstage(1990——now)

2023/3/1633中國(guó)金融出版社Lesson3TheResearchContents,PerspectivesandMethodsofFinanceⅠ.TheResearchContentsofFinanceInbroadsense,thefinanceresearchmainlyincludesthreeparts:first,thefinancialbasistheory(thatis,whatisthefinance,fiscalnature,financialfunctions,etc.);

second,thefinancialsystem(expandingthroughanumberofcategories,suchasthestatefiscalexpenditure,thestate'stax,state’sbudget,nationaldebts,etc.);

third,fiscalpolicy(suchasfiscalpolicyinstruments,fiscalpolicyco-ordinationwiththemonetarymeans).

Therelationshipbetweenthesethreepartsis:fiscaltheoryisthebase,thefinancialsystemispractice,thebridgethatthetheoryleadstopracticeisfiscalpolicy.2023/3/1634中國(guó)金融出版社Lesson3TheResearchContents,PerspectivesandMethodsofFinanceⅠ.TheResearchContentsofFinanceInaddition,asthedevelopmentindifferentcountriesisdifferent,thelevelofmarketdevelopmentisdifferent,theresearchcontentoffinanceinChinaandtheWestisalsonotconsistent.

IntheWest,Financeisinthepublicfinance,andistheproductofamarketeconomy.InChina,beforereformandopeningup,itmainlyreflectswithfinancecorrespondingtotheplannedeconomicsystem;afterthereforms,withthedeepeningofthemarket-orientedreform,publicfinanceisgraduallypublic,bothsystemsandcontenthavegreatlyapproachedtopublicfinanceintheinternationalpractice.2023/3/1635中國(guó)金融出版社Lesson3TheResearchContents,PerspectivesandMethodsofFinanceⅡ、TheResearchPerspectivesofFinanceTherelationshipbetweenfinanceandeconomyisafundamentalclueoffinance.

Financeasabranchofeconomics,itsdefinitionofobjectives,processanalysis,evaluationoftheresultsisinfullcompliancewiththeprinciplesconsistentwithofeconomicresearch.

WhatFinanceistoaskisalsothefourbasicquestionsineconomics:whatisproduced(theproductionnumberofprivategoods,thenumberofpublicgoods?),howtoproduce(theprivatesectorproduction,orthepublicsectorproduction?),forwhomandhowtodecide.Fromaneconomicpointofviewtostudythefinancialproblems,whichisabasicperspectiveoffinance.2023/3/1636中國(guó)金融出版社Lesson3TheResearchContents,PerspectivesandMethodsofFinanceⅡ、TheResearchPerspectivesofFinanceFromthepoliticalpointofviewtostudyfinancialproblems,itisanimportantperspectiveofpublicfinance.

Becausepoliticsistheconcentratedexpressionofeconomics.

People’salleconomicactivitiesaredirectlyrelatedtoandaffectpeople'seconomicinterests,hencetheformedeconomictheory,isboundtoreflectthevariousinterestsdemandsandcontradictionsofmembersofsociety.

Thismakesstudyoneconomictheoryoftendifficulttobelimitedto"economic"level,butmoreorlesselevatedtotherankof"political"level.2023/3/1637中國(guó)金融出版社Lesson3TheResearchContents,PerspectivesandMethodsofFinanceⅡ、TheResearchPerspectivesofFinanceThesubjectoffinancialactivitiesisthegovernment,andfinancialactivitiesnotonlyaffectorinvolvetheinterestsrelationshipofallparties,moreimportantitisasapartofgovernmentactivity,itisoftenthefulcrumandbackingofpoliticalactivities.

So,thedebateonfinancialtheory,makespeopletendtogobeyondthescopeoftheeconomytoadoptapoliticalsolutiontosolvetheproblem.2023/3/1638中國(guó)金融出版社Lesson3TheResearchContents,PerspectivesandMethodsofFinanceⅡ、TheResearchPerspectivesofFinanceTheresearchperspectivesofFinance,arenotjustlimitedtoeconomicsandpolitics.

Governmentasmanagersofthemodernsociety,itsactivitiesalsocoveravarietyofsocialissues,butfinanceisoneofthemostimportantmeanstohandlingitssocialissues,sosociologicalperspectiveisoneoftheimportantperspectivestostudyfinancialproblems.

Inaddition,duetofinancialactivitiesinvolvingthelivesoftheentirecountryandallmembersofsociety,soitmustalsostudyfromphilosophy,ethics,psychologyandotherperspectives.2023/3/1639中國(guó)金融出版社Lesson3TheResearchContents,PerspectivesandMethodsofFinanceⅡ、TheResearchPerspectivesofFinanceVisibly,Financeisaneconomics,butalsoapolitics,evenisasociologyandanethics.

Financialphenomenonisacomprehensivereflectionofthenationaleconomy.

Onlywithextensiveknowledgeandtousethisknowledgetomakeacomprehensiveanalysisoffinancialphenomenon,itmayseetheessenceofthefinancialphenomenon.2023/3/1640中國(guó)金融出版社Lesson3TheResearchContents,PerspectivesandMethodsofFinanceⅢ.TheResearchMethodsofFinance

Intheprocessofanalyzingthegovernment'seconomicactivities,financenotonlyexplainstheinfluenceoftheactualpoliciesontheeconomy,butalsoprovidesguidanceofdecision-makingforthegovernment.Inordertoaccomplishthesetwotasks,financefrequentlyuseinthetwobasicmethodsofeconomicanalysis,namely,positiveanalysisandnormativeanalysis.2023/3/1641中國(guó)金融出版社Lesson3TheResearchContents,PerspectivesandMethodsofFinanceⅢ.TheResearchMethodsofFinance1.Positiveanalysis

Empiricalanalysis(positiveanalysis)aimstodescribeexistenceofvariouseconomicfactorsandtheprocessofeconomicoperation,andtrytoestablishalinkbetweenavarietyofeconomicvariablesorbetweenpolicyinstruments.

Itmainlycoversthefactjudgment,focusesonansweringthestudyobjectis"what",“howtohappen”.Accordingtodifferentresearchtools,positiveanalysiscanbedividedintotheoreticalanalysisandempiricalanalysis.2023/3/1642中國(guó)金融出版社Lesson3TheResearchContents,PerspectivesandMethodsofFinanceⅢ.TheResearchMethodsofFinance2.

NormativeanalysisInreallife,weoftenrespondandjudgeawiderangeofpolicyrecommendationsoractions.Forexample,aretelecommunicationschargeshigher?Whywouldincreasinggovernmentspendingincreaseinflationarypressure?Similarproblemsarecountless.Ineconomics,suchasresearchmethodthattheeconomicconsequencesofactionsorpolicyinstrumentsarejudgedwithmeritsanddemeritsknownasnormativeanalysis.2023/3/1643中國(guó)金融出版社Lesson3TheResearchContents,PerspectivesandMethodsofFinanceⅢ.TheResearchMethodsofFinance2.

NormativeanalysisNormativeanalysisconfirmswhatisthegoodresultsorwhatactionshouldbetakentoachievefavorableresults.

Itisoftenstartingfrompredeterminedcriteria,andusedtodescribetheoptimalpolicytoachievethesestandards.

Therefore,thestandardanalysiscanproposepolicyrecommendationstoachieveeconomicgoals.

Comparedtopositiveanalysisapproachtodescribethefacts,benoti