What role should the state play in China's transition to a market economy? On this issue, a consensus seems to have emerged among Chinese economists, that is, the government should leave to the market what can be best handled by the market and only concern itself with what the market cannot accomplish, either inherently or for the time being (Gao, 1993). But the extent of agreement should be ex...

The fast recovery of Germany’s economy after World War II—the so-called “German miracle”—can be explained by the market-oriented economic policies pursued in the 1950s, based upon the ideas of Ordoliberalism. The slowing growth rates and increasing economic difficulties since the 1970s seem to have resulted from the extension of interventionist and redistributionist policies beyond those sancti...

China stock market has been making great contributions to China’s economy since established. In this paper, a VAR model, with stock market factors and economic growth factors involved, is established to study the relation between China stock market and economic growth. The result indicates that a one-way Granger causality exists between the development scale of stock market and the animation of...

Capitalism has emerged as a force for peace in studies of interstate conflict. Is capitalism also a force for peace within nations? This article shows how a market-capitalist economy—one where most citizens normally obtain their livelihoods contracting in the market—creates citizen-wide preferences for universal freedom, peace, and the democratic rule of law. Prior research has corroborated the...

The recent decades of Marxist social science, particularly political economy, have been characterized by an intense theoretical defensive. The shortcomings of Eastern European socialism and its ideological reflections have been revealed gradually. However, the "ruthless criticism of all that exists" has not been accompanied by an alternative socialist theory. The image of the society to be achi...

We present a static model of aggregate demand and unemployment. The economy has a nonproduced good, a produced good, and labor. Product and labor markets have matching frictions. A general equilibrium is a set of prices, market tightnesses, and quantities such that buyers and sellers optimize given prices and tightnesses, and actual tightnesses equal posted tightnesses. In each frictional marke...

A salient feature of developing economies is the coexistence of a modern commercial sector alongside a traditional subsistence sector-the dual economy. The apparent differences in productivity between sectors imply substantial losses in aggregate productivity. Existing theories of the dual economy rely on exogenous price distortions, and cannot explain why or if these distortions evolve over th...

─Abstract─ This paper proposes an information retrieval method for the economy news. The effect of economy news, are researched in the word level and stock market values are considered as the ground proof. The correlation between stock market prices and economy news is an already addressed problem for most of the countries. The most well-known approach is applying the text mining approaches to ...

Many economists believe that credit market distortions create a financial accelerator which destabilizes the economy. This paper shows that when credit market distortions arise from adverse selection they sometimes stabilize the economy rather than destabilize it. The stabilizing forces are closely related to forces that cause overinvestment in static models. When investment projects are equity...