The Anlysis Of The Efficiency Of Current Account Surplus Adjustment Policy

China's current account surplus continued imbalance is the result of both export-oriented economic growth model of China and the structural imbalance of total demand within the economy. Adjustment of current account surplus plays a very important role of the changing patterns of development and economic structural adjustment. Also it's an effective way of rebalancing global economic. But the traditional way of rebalancing current account is changing the current exchange rate which is not so effective in nowadays. The big volatility of current price will harm the economic growth of China. So we need more than one way to rebalance the current account surplus.In this paper, we use the absorption theory as analysis framework and anlyse how the nomial exchange rate and wage of labour and current adjustment act on the macroeconomy of one country.In history, Germany, Italy, Netherlands, Japan, Singapore and South Korea have experienced economic development situation of continuing current account surplus, the domestic economy has suffered the test of internal and external imbalances. In this process, countries were adopted different coping strategies, including exchange rate adjustments, monetary policy adjustments and wage adjustment. Surplus adjustment, the national inflation rate, labor productivity and unit labor gross domestic product and other indicators of capital changes also have an impact on the current account.Then we use current account balance and relevant macro-economic data of the six countries about Germany Italy Netherlands Japan Singapore South Korea through the 1970-2009 years in order to establish panel data model, empirical analysis of the above indicators adjusted current account surplus is effective. The results showed that, adjusting the wage labor force compared to other indicators to better regulate the regulation of current account imbalances. Improve the labor market, wages can rationalize the prices of domestic factors of long-term structural imbalance and improve the income distribution structure in China to expand domestic demand, domestic demand to further play the role of economic growth, reduce dependence on exports.