The Sustainable National Wealth And The Influence Of The Exchange Rate To It

The national wealth is one of the main benchmarks for one country' s development. The concept of the national wealth is changed accordingly based on the society development. This article reviews the history of the concept of national wealth, analyzes the shortcomings of the traditional concept of national wealth, then gives the newly sustainable national wealth concept and how to accumulate national wealth under the new concept.Although the GDP system is the main tool to benchmark one country' s economy in nowadays, it has some deficiencies. For example, it ignores the effect of the economy activities taking to the natural resource and the environment. The green GDP, which introduces the natural resource and the environment to the traditional GDP, solves these problems, it adapts to the sustainable national wealth. This article analyzes the relationship between them and selects the genuine national savings as the benchmark for the national wealth.After that, this article focuses on the analysis of the "relationship between the exchange rate and the national wealth. In today' s open economic systems, this relationship is complicate and important and exchange rate has great effect on one country' s economy. This article reviews the knowledge of the exchange rate and how the traditional theories of the exchange rate effect the national wealth, then gives a new theory about how to determine the exchange rate from thenational wealth point of view.At last, based on the above analysis, this article analyzes the current status of China' s exchange rate, discloses the harms of the current low-level exchange rate policy and gives some corrections for these errors.