Research On China's Balance Of Payments Policy Under The Exchange Rate Regime Reform

Since the implementation of the reform and openness policy, China has experienced a rapid economic growth for almost 30 years, in which there is an absorbing typical phenomenon that balance of payments (BP) surplus in both accounts have existed in our China's foreign economy for a long time. The continuous huge BP surplus and the enormous foreign exchange reserve have constantly made challenges to our country's exchange rate regime. Under such a background, our China's reform of exchange rate regime has been moving forward. However, with the deepening of reform, the BP imbalance hasn't been reversed, and continued to increase at a steady way. So it's absolutely a profound theme worthy of thinking. This article was just based on the thought about the validity of our current BP policy, and then probed to the best policies in groups to adjust our BP position.The foreword part of this article firstly made a general introduction of this article's background and research value. The second chapter set off from the basic concept and principle of BP, briefly explained the development of BP theory. The third chapter, from the exterior phenomenon to the interior nature, made a demonstration of our country's BP position's characteristic and causes. The fourth chapter began to make a direct research about our country's BP policies. Starting with the Mumdell-Fleming model, it analyzed the feasibility and validity of our current BP policies. Then, combining with macroeconomics background of exchange rate regime reform, it emphasized on the study about the validity and the limitation to apply exchange rate policy to correct BP imbalance, and finally tried to bring forward the best policies in groups to adjust our BP position.