International Hot Money, The Regulation Of Research

Following the financial globalization and the capital account liberalization,the international hot money has already become one of the most active phenomena in the international economy. A lot of financial crises in 1990s were related to the hot money,such as European Monetary Crisis in 1992,Mexico Financial Crisis in 1994 and Southeast Asia Financial Crisis in 1997.Because of the good economy environment,a large amount of international capital has entered our country,what's more,since the appreciation anticipation of RMB in 2002,Chinese financial market has become the focus of investment to make profits.Therefore,the adverse effect of the international hot money has become more and more apparent,and how to supervise the hot money now is an important issue.First, I define the definition of the international hot money,summarize its forming conditions and sourses,then analyse how the international hot money impacts on the international revenue and expenditure,exchange rate system and the capital account of one country.Second,on the basis of the above theoretical analyses, I review the measures of supervising international hot money of Chile,Malaysia, Thailand and Indonesia,then I conclude the experiences and the lessons from them.At last I get a conclusion that a country should keep its international payments balance,implement a flexible exchange rate system and supervise its capital account.Third, I analyse the international balance of payments in recent years of our country and summarize how the international hot money has entered our country. Then I point out that the hot money has its adverse impects on our macroeconomy and capital account.On the aspect of macroeconomy,because of our imperfect exchange rate system,the hot money makes not only our foreign exchange reserve more than enough but also RMB face a appreciation pressure and the monetary policy lose its efficiency.On the capital account, the most direct...