Glamor Economics

Chapter 19

Chapter 3 Section 6 The yardstick for the maturity of the market economy—the credit economy

People cannot stand without trust, and credit is the basis for the existence of markets and transactions.In a sense, credit is a measure of the maturity of a local market economy.

The essence of a market economy is a credit economy, German economist Bruno?Hilbrand first proposed the concept of credit economy.Hilbrand divided social and economic development into three stages according to different transaction methods: the natural economic stage dominated by barter exchange, the monetary economy stage with currency as the medium of exchange, and the credit transaction-led stage. stage of credit economy.The credit economy is an economic phenomenon produced after the commodity economy develops to a certain stage.

In market economic activities, due to the different production cycles of various departments and enterprises, the turnover of funds is also different, objectively, there are requirements for the purchase and sale of commodities on credit and the loan of funds.Due to the improvement of productivity and the increasing abundance of commodities, the sales of real estate such as houses and durable consumer goods also objectively require the introduction of consumer credit.Under such conditions, the credit relationship has gradually become one of the most common economic relationships in modern economic life.At this time, every department and every link in economic activities is permeated with credit relationship.

The reason why the modern market economy is a credit economy is also reflected in the fact that the market operation mechanism itself contains credit requirements for market players.The law of value requires people to abide by the principles of equivalent exchange, equality and mutual benefit, the law of competition requires people to establish a fair competition concept, and the complexity of economic exchanges requires market players to respect contracts and contracts.From buying and selling in the commodity market to borrowing and lending in the capital market, from transactions in the factor market to payments in the securities market, etc., there is no need for voluntariness and repetition to produce the morality that is required by the commercial society, that is, business reputation.Because the market transaction is voluntary, it must be required that the transaction can be carried out only when both parties feel that it is profitable; because the market transaction is repetitive, a certain trader may be fraudulent at a certain moment, but he cannot defraud the same trader again. Therefore, out of self-interest maximization and long-term development, traders naturally have to form a habit of emphasizing reputation.Only by being trustworthy can market players obtain solid partners, establish a brand image, and expand scale.

Under the conditions of a mature market economy, credit has become an indispensable intangible capital for every enterprise to gain a foothold in society, and abiding by credit is one of the survival concepts and business awareness that every enterprise should have.It is not an empty concept, but capital, wealth, and competitiveness.In ancient and modern China and abroad, no one has a long-term foothold because of lack of trust, and no enterprise has continued to develop because of lack of trust. The test of whether an economy has entered a mature market economy depends on whether it has entered a credit economy.The degree of application of credit in the economy has become a yardstick for evaluating the maturity of the market economy.

[links to related words]

A form of credit economy monetary economy.In Western countries, it is generally referred to as the monetary economy.In the credit economy, traders realize commodity exchange or currency transfer through the establishment of creditor's rights and debts.Human social transaction mode has gone through three stages of development: physical exchange, currency-mediated exchange, and credit-based exchange. The credit economy is an economic phenomenon that occurs after the commodity economy develops to a certain stage.

(End of this chapter)