Virtual Economy and Financial Crisis

The paper, based on the frame of Marxist economics, after analyzing the evolution of the relation between efficiency and equity, points out that the basic cause of financial crisis is the over-expanding of virtual economy under the economic globalization. Virtual economy can result in financial bubble through its pricing mechanism. Economic globalization and financial integration expand the scope of virtual economy, strengthen the social risk of financial system and provide chances for spreading of international speculation. The three elements are mixed together and lead to financial crisis.