Allais proposed many market economic models and systematically elaborated on the general economic equilibrium theory and the theory of maximum utility. Allais believes that the general equilibrium models from Walras to Debreu all assume a market in which all goods are concentrated together for exchange, and the market price is the same and given to all market participants. Then through a single round of transactions, the economy transitions from disequilibrium to equilibrium. These assumptions are unrealistic and he calls it the "single market economic model". In response to these shortcomings, he proposed the "multi-market economic model", which assumes that exchanges leading to equilibrium occur continuously at different prices, and at any given point in time, the prices acted by different operators do not have to be the same. Driven by ", every transaction approaches equilibrium.

Alai's "multi-market model" is closer to reality and more general than the "single-market economic model". It not only encompasses all possible market forms with and without competition, but also It can describe the economies of Eastern countries and developing countries as well as the economies of Western countries, and its description is dynamic. Since Allais regards private decentralization, free pursuit and realization of surplus as the basic way to achieve the state of maximum efficiency, he strongly opposes Keynesian government intervention in terms of policy propositions. Economics, especially microeconomics as a basic theory, according to Marshall's definition, should explain people's economic behavior. But in the classic theory, it cannot explain the following phenomenon: why people go to a remote small grocery store to save a few dollars on a small price item. , but are indifferent to a discount of the same amount of several dollars offered by a supermarket equally far away? Why do people buy more expensive small insurance policies when buying insurance, but are less willing to buy cheaper large insurance policies? Why do investors in the stock market overreact to short-term good news, leading to over-sensitivity in stock prices?

This series of phenomena all involve people’s basic behaviors, especially the basic behaviors of people’s decision-making when facing risks. Traditional economics is based on the 1944 theory of von Neumann and Morgenstern, which believes that people pursue maximizing expected utility when facing risks. This is often used to explain people's choices of different stocks or different investment opportunities in the stock market.

But as early as the 1950s, Allais proposed the famous "Allais Paradox" through a series of controlled experiments, posing a challenge to the expected utility theory. For example, if there are two investment opportunities A and B: A will win 3,000 yuan for sure; opportunity B will win 4,000 yuan with an 80% probability and zero with a 20% probability. Most people will choose A. But consider investment opportunities C and D again. C will get 4,000 yuan with a 20% probability and zero with an 80% probability, while D will get 3,000 yuan with a 25% probability and zero with a 75% probability. At this time, the above Most people who prefer A between A and B will choose C. However, in fact, opportunity D is only 0.25×A, and opportunity C is only 0.25×B. Obviously, people’s choice between A and B is inconsistent with their choice between C and D. This is called Allais' paradox. Allais won the 1988 Nobel Prize in Economics for proposing this paradox and a series of studies on human choice behavior related to this paradox. However, economists, including Allais himself, did not Give a reasonably convincing explanation for this paradox. It was not until 1979 that Kahneman and Tversky published the article "Prospect Theory" in the journal "Econometrics" in an attempt to explain it, and won the 2002 Nobel Prize in Economics for this. Alai described the development of the world financial system as "crazy". He believed that the current world economy has become a casino. In this casino, the world's foreign exchange market trades US$2 trillion every day, but less than 3% is actually related to production. , the other 97% is related to speculation. The unlimited expansion of "virtual" financial assets is caused by the abnormal development of the financial market, especially the continuous emergence of financial derivatives and their market role. Among them, financial futures played an important role in fueling the flames. In 1848, 82 businessmen initiated the formation of the Chicago Board of Trade, the world's first commodity futures exchange. The emergence of world financial futures is more than 100 years later than commodity futures. In May 1972, the U.S. international currency market first launched foreign exchange futures. Since then, interest rate futures, stock index futures and other financial futures have been launched one after another. In the 1980s, the daily trading volume in the world financial market was only more than 100 billion US dollars. Today, it has increased by more than 10 times. This is naturally due to the magic of financial futures. The emergence of financial futures and financial derivatives was originally intended to reduce foreign exchange and financial risks through hedging. However, due to their close relationship with the spot market and their special game rules, speculators took advantage of risks and manipulated the market. Leverage and tools to obtain excess profits. This kind of game rules allows speculators who use them not as a means of hedging or hedging risks, but to make huge profits, to easily monopolize the market and hold huge positions through margin leverage, thus influencing the rise and fall of the market and making the market The complexity and difficulty of liquidity risk, credit risk and market supervision are infinitely increasing.

In addition, futures transactions, including forward transactions, swap transactions and derivative transactions, cannot be reflected in the balance sheet. Their transactions do not affect the asset and liability structure of the institution itself, but they continue to carry out value in the bank account. Revaluation creates fictitious capital, thus forming a vicious cycle of financial bubbles. Of course, the biggest problem with this kind of game rules is that it establishes the legitimacy of speculators. In the end, speculators represent the market and international funds, and market managers should naturally give them a natural "degree of freedom."

At the end of 1993, Allais published a series of articles in Le Figaro, in which he criticized the International Monetary Fund, the World Bank and the European Community for their views on world trade freedom. policy. For example, he sharply criticized the so-called "Rural/Urban-North/South Model" (RUNS) economic model used in the World Bank and European Community studies. Alai pointed out a fundamental error in the World Bank's methodology. He pointed out that the RUNS model and research based on this model are scientifically unqualified. He said in his conclusion: "The World Bank's forecast of huge gains in the world economy is intended to influence political policies. The mask of pseudo-science can only fool naive and ignorant people. Making decisions based on such conclusions represents the actions of millions of people around the world." Isn't it ridiculous to make decisions based on the opinions of the people? The World Bank report is confusing and is only welcomed by simple-minded dogmatism and uncontrolled free trade ideas." Huge international capital flows can easily cause economic bubbles in developing countries, putting the professional capabilities of international financial institutions such as the IMF and the World Bank to guide and provide consultation on the economic development of member countries to the test. In the process of financial globalization and financial liberalization, some countries blindly open their capital accounts. Due to the relative shortage of domestic capital, financial controls, and high interest rates, some foreign capital, especially some speculative short-term capital, has flocked to the country. On the other hand, due to low foreign interest rates, banks and enterprises borrowed large amounts of foreign capital, even short-term capital, and then invested it in the real estate and stock markets, causing real estate and stock prices to skyrocket, creating false prosperity. The result of false prosperity is that it seriously misleads a country's fiscal and monetary policies, and also seriously misleads the decision-making of international financial institutions such as the IMF and the World Bank, laying the foundation for the crisis. Therefore, the reform of the IMF is imperative.

Given that IMF reform is imperative, some heads of government, financial officials, and financial experts have expressed their views on reforming the international monetary system or proposed their own reform plans. Among them, Allais' plan includes seven key points: completely abandon the floating exchange rate system and replace it with an adjustable fixed exchange rate system; implement an exchange rate system that can ensure the balance of international payments; prohibit the practice of competitive currency depreciation; completely abandon the international exchange rate system with an adjustable fixed exchange rate system. The US dollar is the unit of account for currency, exchange currency and reserve currency; merge the WTO and IMF into one organization and establish a regional organization; prohibit major banks from engaging in speculative activities in foreign exchange, stocks and derivatives for their own benefit; adopt appropriate The indexation is gradually implemented internationally as a unified unit of account.