Author(s)

Ping Wang

Corresponding Author

Ping Wang

Abstract

The operation and development of market economy itself has limitations, and there may be instability and volatility in the process of economic operation. Under the condition of the development of modern market economy, the financial market is an important part of the market economy, which can realize the function of adjusting the allocation of resources and widening the financing channels. With the implementation of the socialist market economy system in China, the Chinese government can carry out strong macro-control over the market economy. Under the macro-control of the government, the fluctuation caused by the defects of the market economy has a relatively small impact on the financial market. The government can take a series of economic measures to influence the market, so as to promote the sustained and stable development of the financial market. The government and investors should make a scientific understanding of the development characteristics of the market economy in China, and the government should regulate and manage the financial market and take the important role of ensuring the smooth operation of the economy. The investors should take into account the influence of the economic fluctuation on the market and make a scientific judgment on the development of the market when the investors are involved in the financial market transaction.

Keywords

Economic fluctuation; Financial economy; Chinese market; Microeconomics; Transmission mechanism