| George Soros was well known after the 1997's financial crisis in Southeast Asia. Somebody admires him, and somebody hates him. The attack to the baht by the Hot Money, as well as the Quantum Fund managed by Soros, induced the crisis.Looking back on the three financial crises occurred in the 1990s', we could find the trace of the Hot Money. Nowadays the Hot Money is generally considered as direct cause of the crisis. Along with entering the 21st century, the globalization and integration of economy and finance will be more developed and more deepened. The rapid development of the imformaton technology accelerates the globalization and integration, which offers economic and substantial bases for the flow of the Hot Money. The emergence of more and more financial derivatives makes speculation easier, lower-costed and higher-returned. Therefore, more attention is necessarily paid to the Hot Money.My thesis begins with the discussion of the essential of the Hot Money. It first expounds the definition, characters, origin, development, advantages and disadvantages of the Hot Money. Then it analyzes the role of the Hot Money in the financial crisis and the influence to a country's financial safety and stability. The standpoint of my thesis is that keeping the destructive function of the Hot Money away should be regarded seriously. Relative measures are then put forward, which emphasize that preventing the destruction of the Hot Money is not only a country's responsibility, but the whole world's responsibilities.My thesis contains three chapters.Chapter One: Discussion of the Essential of the Hot MoneyThe Hot Money is defined as short-term capital with unfixed investing area, flowing from one market to another for the purpose of high profit. Having developed for several decades, the scale of the Hot Money is now very huge and is no longer based upon substantial economy; the flowing structure has changed a lot; institution investors have become the main body of the Hot Money, which possess excellent financing experts and advanced facilities. The evolvement of the structure of international economics and finance resulted in the emergence and rapid development of the Hot Money, while the financial innovations and the liberalization of capital account all over the world and the highly progress of information technologies provide a wider space for the Hot Money. The Hot Money not only has the advantage of improving efficiency and integration, but also has the disadvantage of over-speculating and hard- controlling. The last section of this chapter draws a conclusion that the essential of the Hot Money is fictitious capital by analyzing the definition and characters of fictitious capital.Chapter Two: The Hot Money and the Financial CrisisThe beginning of this chapter indicates that the Hot Money is the direct cause of the financial crisis by describing how the Hot Money attacked the baht. But the basic causes are based in the domestic Thailand: (1) decreased productivity, adverse balance of the current account and huge deficit unsteadied the currency; (2) economic policies deviated from the change of international financial markets; (3) economic system was unfit for the opening to the outside world; (4) financial system was unfit for the growth of the financial market; (5) the adjustment of industrial structure was unfit for the development of economy; (6) financial policies were inconsistent, so that the adjustment of interest rate was of less effect. Thereafter, the thesis summarizes the attacking mechanism of the Hot Money, and then expounds the pipelines of the crisis. At the end of this chapter the influence to a country's financial stability by the Hot Money is discussed.Chapter Three: The Measures of Preventing the Destruction of the Hot MoneyBalance of payments is the base of preventing the destruction of the Hot Money, and perfect financial system is a necessary condition. The measures of constructing a perfect financial system are: (1) strengthen the financial supervision; (2) perfect... |
PDF Full Text Request