Political Economy Quarterly

 

Latest Issue

  • Economic Analysis of Dredge the Blocking Points of the Development of New Quality Productive Forces

    LI Yanchun;HAN Wenlong;School of Economics, Southwestern University of Finance and Economics;

    Breaking through the blocking points that restrict the development of new quality productive forces plays an important role in stimulating the endogenous motivation, creative potential and innovative vitality of the development of new quality productive forces and forming a new type of production relationship that is suitable for the development of new quality productive forces. Based on the theoretical basis of the “Four Links” of social reproduction, this article constructs the “Four Forces Model” to identify the blocking points of new quality productive forces, and discusses the issues of what are the blocking points that restrict the development of new quality productive forces, why they exist, and how to clear them. The study found that: At present, the obstacles that constrain the development of China's new quality productive forces are as follows: the innovation-driven capabilities are not enough, the income distribution pattern need to be optimized, both domestic and foreign markets are hindered, and the release of consumption power is insufficient.The main reasons for the existence of these congestion points are insufficient construction of the innovation system, the need for in-depth reform of the income distribution system, the need for in-depth improvement of the socialist market economic system, and insufficient consumption structural and horizontal forces. To clear these blockages, we need to deepen reforms centered on achieving qualitative leaps in innovation capacity, distribution efficiency, circulation vitality, and consumption dynamism, thereby strengthening policy synergy.

    2025 01 v.4;No.10 [Abstract][OnlineView][Download 2493K]

  • The Characteristics of Socialist Market Economy with Chinese Characteristics in the New Era

    LI Mingxing;AN Ziqiao;APAC World Trade Group;School of Economics and Management, Northeast Normal University;

    Under the strong leadership of the Communist Party of China, socialist economic construction of our country has always been guided by the Sinicization of Marxism that achieves a dialectical unity between “co-creation of value” and “sharing of value”. Entering the new era, with the goals of implementing the new development philosophy, building a dual circulation system, and promoting high-quality development, “co-creation of value” are committed to enhancing value creation and innovation capabilities, pursuing comprehensive development that encompasses new quality productive forces and new production relations. At the same time, “sharing of value” aims to optimize the circulation of economic value, achieving effective enhancement of quality and appropriate level of growth. The dialectical unity of these two aspects promotes the high-quality development of the socialist market economy in the new era.From the socialist transformation in the early days of the People's Republic of China, to the great turning point of reform and opening up, and then to the new stage of high-quality development in the new era, China has established a theoretical system of the socialist market economy with Chinese characteristics, which organically integrates the basic principles of Marxism with the achievements of China's economic practices. Guided by this theoretical system, the institutional mechanisms of the socialist market economy in the new era have undergone significant optimization, which provides an important institutional guarantee for cultivating new quality productive forces and new production relations in the aspect of “co-creation of value” and achieving the efficient flow of value in the aspect of “sharing of value”.To achieve greater advancement and sustainable development of new quality productive forces, this paper will review the three major stages of China's economic development from the early days of the People's Republic of China to the present, deeply analyze the connotation of the socialist market economy in the new era, and explore the directions of institutional mechanism innovation in China's market economy.

    2025 01 v.4;No.10 [Abstract][OnlineView][Download 1096K]

  • A Mathematical Political Economy Study of Harmonious Coexistence between Humans and Nature

    QIAO Xiaonan;QU Wangcheng;School of Economics, Nankai University;Center for Studies of Political Economy, Nankai University;

    Chinese modernization is the modernization of harmonious coexistence between humans and nature. It is based on the fundamental principles of Marxist political economy. The paper then goes on to examine the level of pollution abatement in the linear production model, and discusses the short-term and long-term impacts of ecological environmental governance. It has been demonstrated that in the short term, the implementation of ecological environmental governance will result in an increase in the cost of pollution abatement, while simultaneously reducing the cost of production. The ultimate outcome of the rate of profit and green total labor productivity is contingent upon the magnitude of the discrepancy between these two cost change effects. In the long term, the pollution abatement level selected by enterprises on the principle of profit maximization may facilitate economic growth, yet it cannot ensure the effective enhancement of the ecological environment. Therefore, it is essential to establish a suitable level of pollution reduction in accordance with varying policy objectives, thereby achieving pollution reduction while maintaining a high equilibrium growth rate and ensuring the harmonious coexistence of humanity and nature.

    2025 01 v.4;No.10 [Abstract][OnlineView][Download 1339K]

  • Bank Credit Creation Under Basel Ⅲ Regulations

    LUO Yuhui;LI Boyao;School of Marxism, Anhui University;Business School, China University of Political Science and Law;

    Strengthening financial regulation is the focus of China's ongoing financial reform. Moreover, analyzing credit and money supply under bank regulation is a fundamental issue in the study of bank regulation. This paper adopts the credit creation theory of banking to explore this issue. The theory argues that banks create credit and money when they provide loans. This implies that deposit supply is no longer the main constraint on credit supply; bank regulation becomes a key constraint on credit and money creation. The paper analyzes the effects of capital adequacy ratios, leverage ratios, liquidity coverage ratios, and net stable funding ratios on credit and money supply. The paper discusses the impacts of capital shocks(credit defaults) or reserve shocks(deposit transfers) on credit and money supply under the regulations. The study finds that these shocks cause banks to expand or contract their balance sheets, leading to an increase or decrease in their credit and money supply. There is a multiplier relationship between the change in credit and money supply and the intensity of the shocks. Different regulations correspond to different multipliers.How the supply of credit and money is determined is the fundamental issue in the study of money and banking. I develop a model based on the credit creation theory of banking. The supply of deposits is not the main constraint on that of credit. Instead, bank regulations become the key constraints on the creation of credit and money. When banks comply with regulations, capital or reserve shocks affect credit and money supply. In response to the shocks, banks adjust their credit and money supply. These adjustments lie at the heart of the model and determine changes in banks' abilities to create credit and money. The changes in the abilities present the impacts of capital or reserve shocks under the regulations. I find that the impacts are given by the multipliers that relate the shocks to the changes in the abilities. The different regulatory regimes correspond to differing multipliers. Under capital adequacy ratios or leverage ratios, banks deplete the credit and money supply in response to capital shocks. Either of the multipliers is greater than one. In response to reserve shocks, the effect under capital adequacy ratios differs from that under leverage ratios. If banks are subject to capital adequacy ratios, they do not react to reserve shocks. By contrast, subject to leverage ratios, banks will increase their credit supply by the size of reserve shocks.Under liquidity coverage ratios, banks either increase or decrease the credit and money supply in response to capital shocks. The reason is that capital shocks decrease both cash outflows(dividend payments) and cash inflows(loan repayments). Accordingly, the values of the liquidity coverage ratio may rise or fall after capital shocks. By contrast, by reducing high quality liquid assets, reserve shocks reduce the credit and money supply. The multipliers are larger than one. Under net stable funding ratios, either capital shocks or reserve shocks force banks to decrease the credit and money supply. The findings offer valuable insights for designing effective policies aimed at influencing the supply of credit and money.

    2025 01 v.4;No.10 [Abstract][OnlineView][Download 1170K]

  • The Pathways and Practices of Patient Capital in Supporting High-quality Development of the Real Economy: Insights from International Experience

    YIN Tianhui;LI He;Postdoctoral Research Workstation of Beijing Stateowned Capital Operation and Management Company Limited;Postdoctoral Research Station of the School of Social Sciences, Tsinghua University;

    Patient capital has emerged as a critical financial mechanism for supporting the real economy. However, its value creation processes and practical pathways remain underexplored. This paper adopts an international comparative approach and utilizes case analysis to examine the core characteristics of patient capital—long-term orientation, inclusivity, and value co-creation. It identifies four key practical paradigms: Blackstone's integration of industrial and financial investments to build a biopharmaceutical ecosystem, Spain's “government-social capital alliance” for establishing a shared risk mechanism, African clean energy projects leveraging digital technology for precise investment, and South Korea's institutional efforts to optimize the environment for the development of patient capital. The study uncovers several structural challenges prevalent in international practices, including fund misallocation, funding gaps in emerging sectors, and regional investment imbalances. In response, the paper proposes a “three-dimensional” development framework: from the institutional perspective, ensuring long-term policy stability; from the market perspective, building networks that link industry and investment while fostering a diversified capital ecosystem; and from the technological perspective, enhancing the role of financial technology. The findings offer a theoretical foundation for improving China's patient capital support system and provide valuable insights for achieving high-quality development.

    2025 01 v.4;No.10 [Abstract][OnlineView][Download 1285K]

  • Digitization or Financialization: Has Contemporary Capitalism Entered a New Phase?

    ZHOU Shaodong;ZHANG Heng;School of Marxism, Wuhan University;

    Focusing on the latest stage of development of contemporary capitalism, academics have proposed “Digital Capitalism” and “Financial Capitalism”, but neither of these views can fully summarise the new features of contemporary capitalist mode of production. This paper argues that the “Digital-Financial” capital of contemporary capitalism are formed by combining digital productive forces and monopoly financial capital, and presents two types of “digitisation of financial capital” and “financialization of digital industry”. The former repairs the capitalist mode of production, and the latter pushes it to achieve a new leap. The new types of profitability means derived from “Digital-Financial” capital have promoted a new round of international expansion in capitalist countries. while The latest features of contemporary capitalism show that “Digital-Financial” capitalism is the latest stage in the transition period from state monopoly capitalism to international monopoly capitalism in the context of the information revolution.

    2025 01 v.4;No.10 [Abstract][OnlineView][Download 1437K]

  • Kohei Saito's Ecological Interpretation and Reconstruction of Marxist Political Economy: On Alternative Solutions to “Degrowth Communism”

    XU Tao;School of Marxism, Nankai University;

    Kohei Saito believes that the unfinished aspect of Marx's critique of political economy is ecological criticism, which reprsents a rediscovery of Marx's political economy through careful study of Marx's natural science notes and important texts in his later years in MEGA~2. On the one hand, Kohei Saito borrowed and absorbed the previous statements of Foster and others in the theory of “Metabolic Rift”. On the other hand, he further explained the formation and transfer of “Metabolic Rift” from the natural material cycle, space, and time levels, pointing out the increasingly emerging ecological crisis of capitalism in the “Anthropocene” era. Based on this, Kohei Saito constructed a “Degrowth Communism” aimed at finding a post-capitalist social system that transcends the capitalist system, in order to address the alienation of metabolic rift between humans and nature. Kohei Saito's ecological interpretation and reconstruction of Marxist political economy enriches and develops ecological Marxism, but he also fails to properly handle its relationship with historical materialism, lacks class analysis methods, and therefore cannot avoid being utopian.

    2025 01 v.4;No.10 [Abstract][OnlineView][Download 1028K]

  • Cyclical Patterns of Employment,Wage Inequalityion of Income,and the Functional Distribut

    Peter Skott;Adam Aboobaker;Aalborg University Business School, Aalborg University;Global Development Institute, University of Manchester;Southern Centre for Inequality Studies,University of the Witwatersrand;World Inequality Lab, Paris School of Economics;

    Like the functional distribution of income, wage inequality is subject to fairly regular cyclical fluctuations. In this paper, we(i) analyze sources of these fluctuations,(ii) present models of endogenous cycles that include heterogeneous labor and wage inequality,(iii) show that these models generate patterns of both wage inequality and the functional income distribution that are in line with the evidence, and(iv) caution against any extrapolation of cyclical patterns to long-term trends and beliefs in expansionary aggregate demand policy as the key instrument to promote greater economic equality.

    2025 01 v.4;No.10 [Abstract][OnlineView][Download 2622K]

  • A Study of the Asymmetric Impact of Economic Policy Uncertainty in Corporate Inter-temporal Innovation Decisions

    WU Di;HAN Jiayi;College of Insurance, Shandong University of Finance and Economics;Legal Information Center, Peking University;

    By constructing an innovation decision-making model that includes economic policy uncertainty(EPU), this paper finds that EPU will have a negative impact on corporate innovation. Further analysis shows that it has asymmetric effects on long-term and short-term innovation decisions and puts forward two potential mechanisms of inhibitory effect in long-term: one is reducing follow-up investment, and the other is reducing marketization return. The empirical analysis verifies the inhibitory effect of EPU on corporate innovation and verifies two potential mechanisms. We further investigate the potential moderating effects: increased information transparency and of capital structure adjustment speed can mitigate the inhibition of EPU on corporate innovation. This study provides clear policy implication to ease the uncertainty of economic policy at the government level.

    2025 01 v.4;No.10 [Abstract][OnlineView][Download 1265K]