My book is a little special.The special thing is that it is different from general economics works: when you open the catalog, you will not see the bluffing words such as "price theory" and "institutional economics" in economics.The second point is that although readers can’t see empty discussions such as "the first and second theorems of welfare economics", they can understand that my "criticism of real estate" is actually "for the common people to live a better life." day".What's more special is that when discussing the RMB exchange rate issue with you, instead of just talking about theories, I even earnestly analyzed to you whether the appreciation of the RMB has made you richer?

Why don't I talk much about theory in this book?The reason why I don't talk about it here is because I want to tell everyone: the real economics should be economical and economical, it should be able to guide practical problems in all aspects, and it should be able to stand at the forefront of the times! This book seems to be eloquent, but in fact it is a rigorous and vivid discussion around two core issues.Look through the chapters of this book that discuss real estate, capital markets and financial regulation, and the subprime crisis. Do you agree with me?If you read my dedicated chapter, you're probably going to start wondering if I accidentally added a movie review. "However, what you think of is all wrong!" In fact, if readers still think that these have nothing to do with economics at the moment, then you really need to read this book to get to the bottom of it!

I used one chapter of real estate to finish the five topics of "Theory of Firms", "Theory of Consumers", "Theory of Prices", "Social Welfare" and "Government Intervention", and I also finished all the microeconomics.Because through the real estate industry, I will take you to analyze the difficulties faced by Chinese real estate developers. This is the "manufacturer theory"; "Consumer Theory"; with regard to housing prices, I analyzed for you whether the property market has reached an inflection point. I will tell you why this is my ultimate goal, and why this should also be the starting point and ultimate goal of the government's policy formulation; in the end, I helped you interpret "the problem of real estate is not excess liquidity", but "the deterioration of the investment and business environment result” and thus asserted that “the macro-control of China’s economy has failed”, so it is necessary to “oppose the use of GDP as the key link”.

You may have to worry, I have finished talking about economics in one chapter, so isn’t it doomed to digress next?I want to remind you: microeconomics is not all of economics!So what else should economics include?This is exactly what I want to tell you in the remaining twelve chapters.Political economy should also address questions of comparative politics, of redistributive politics, of dynamic politics, of monetary policy, and of economic policy.What are comparative political issues?Election rules and campaigns, institutions and responsibilities, and political institutions are all comparatively political issues.So I lead you to look at the United States from the perspective of the Obama-Hillary dispute, in order to study the American system and responsibility culture, as well as the political issues of the American election.Relevant chapters profoundly point out two prominent drawbacks of the current American political system: racial conflicts, and whoever has the best acting skills will be the president.As a responsible and good government, the Chinese government has clearly seen such drawbacks and carefully promoted gradual political system reforms.Based on the same considerations, I advise everyone not to look at Hong Kong on a horseback. You have to see that the essence of Hong Kong is the awareness of the rule of law. Moreover, I will compare it with Singapore's legal concept, and use Hong Kong's traffic management to dig deeper. soul of capitalism.More importantly, I hope that through this kind of reference, everyone can think about the legalization process in the process of the rise of great powers, the relationship between China’s legalization process and the democratization process, and how China should realize legalization construction, etc. important practical issues.

Many people think that only general transfer payment issues, pension issues, and unemployment security system construction issues are political redistribution issues.But in essence, I think that the capital market is China's biggest redistribution political problem!The stock market should be an important tool for the government to keep wealth among the people and transfer social wealth fairly. Therefore, the government should give priority to protecting the interests of small and medium shareholders without hesitation, and unswervingly crack down on underground finance.Based on this analysis, I think that "the development of funds benefits from the strict supervision of the government", and I suggest that "the responsibility of the China Securities Regulatory Commission is to supervise the market, not to suppress bubbles", and the most important thing is to not hesitate and not to suppress the bubble. Take an unwavering and firm fight against insider trading, especially in collaboration with political lobbying and special interest groups.As a reference, I specifically introduced the measures and experience of the United States in combating insider trading.As a preventive measure, I would also like to emphasize that: to introduce international financial giants, the legal system must first be improved, otherwise they will become the largest insider trading group.

The third area is dynamic political issues.The word is a bit of a mouthful, but tax policy, public debt, and various dynamics in economic growth fall into this category.I will have the opportunity to talk to you about tax policy and issues in my country's bond market in detail. In this book, I briefly comment on this TV series.In fact, I want everyone to think about this question: Does modern society provide enough opportunities for young people?The reason why this film is popular is because it reflects the distress of young people in this era.This distress is similar to the plight of entrepreneurs. The investment and business environment faced by entrepreneurs is also rapidly deteriorating.For example, the real estate market bubble and the stock market bubble are the result of the deterioration of the investment and business environment of private enterprises. Because some fields are too cold, they are unwilling to invest, so they go to speculate in real estate and stocks.The overheating of the economy at the same time is completely caused by our political or institutional factors. The local government's one-sided pursuit of GDP has caused the overheating of the construction-related sectors. This is the dual economy.Therefore, under such conditions, many regulatory measures are doomed to fail from the day they were enacted!

Monetary policy and economic policy are also an important aspect of political economy.Monetary policy should take steady economic growth and the improvement of people's welfare as the ultimate goal, so after I introduced several basic concepts in the financial field, I pointed out that monetary policy should be based on curbing inflation; so I pointed out that we live in In the era of negative interest rates, we focus on analyzing the impact of rising exchange rates on our lives.It is precisely because the essence of this book is political economy that I will list the "Spirit of the 17th National Congress of the Communist Party of China and Macro-control" as the focus of monetary policy and economic policy analysis.

So why am I talking so much about education?He even spared no effort to talk about the education in the Mainland, and then the education in Hong Kong, and compared and analyzed it dialectically.Because education policy is economic policy after all!Why are college students in the mainland unable to find a job, and why is the employment situation for college students in the mainland so severe?Because in terms of economic structure, China is not a big manufacturing country at all.Before expanding the enrollment of colleges and universities, we didn't figure out that we don't need so many college students, because our manufacturing industry is in the link with the lowest value in the industrial chain.If you don't come to listen to my lectures, you will never know why you can't find a job for the rest of your life.You may even blame yourself: Did you not study hard at school, did you fall in love every day at school, so you made your grades worse?If I had known earlier, I would not have fallen in love and studied hard.In fact, this is the result of the wrong positioning of our industrial chain.Why is the employment rate of college students in Hong Kong so high?Because Hong Kong's economy is dominated by the service industry, and only the service industry can absorb so many college students for employment.Take our Chinese University of Hong Kong as an example, the employment rate of students who graduated from the business school is 100%, so how high is the salary? In 2007, the lowest was 9,000 yuan and the highest was 40,000 yuan.The employment rate of graduates of business schools is guaranteed, but that of graduates of science and engineering cannot be guaranteed.Because Hong Kong's economy is completely dominated by the service industry, under this soft link system, employers have little demand for science and engineering graduates, which makes it difficult for them to find jobs.Therefore, when students apply for Hong Kong schools, top students go to business schools and law schools.When I summarize this book in this way, I think you can understand my opening sentence: This book seems to be eloquent, but in essence it is rigorous and unsophisticated around the core issues of political economy one after another. Lost vivid discussion.Perhaps from another point of view, my political economy is also relatively unsuccessful: the text is plain, without mathematical symbols and those convoluted economic terms.However, this book explains all aspects of political economy, so everyone will become an economist after reading this book, and they are economists standing at the forefront of the times!

Lang Xianping July 3, 2008