AN INTERPRETATION OF THE FINANCIAL CRISIS FROM THE PERSPECTIVE OF CRISIS TRANSFER

A traditional crisis usually demonstrates as a crisis in production capacity,but a modern crisis generally demonstrates as a credit crisis.There are fundamental differences in the generative mechanisms and transmission mechanisms of the two kinds of crises,which have made the classical center-periphery structural hypothesis invalid in explaining the current financial crisis in the US.However,the classical center-periphery crisis-transferring mechanism does not change in both kinds of crises.In the process of destructing and ever-escalating of the world financial system,China should locate itself appropriately such that it can strengthen regulation and prevent risks;specifically,China needs to cope with current situation with active and effective strategies in aspects such as financial institutions,financial tools,and industrial development.