Research On The Influence Of Economy Made By International Short Capital Flow In China

With economic globalization and the deepening of financial innovation, theincreasing scale of international capital flows, including international short-termcapital flows is becoming more frequent and faster speed. Meanwhile, with theaccelerated process of China’s opening up and rapid economic growth, sizeableinternational capital began to flow into and out of a large number of ongoing country,the most noteworthy is the international short-term capital flows. Internationalshort-term capital flows into and out of large-scale, certainly on China’s monetarypolicy formulation and implementation of a significant impact, the study ofinternational short-term capital on the impact of China’s monetary policy hasimportant practical significance.Because of the strong expectations of RMB appreciation and the global lowinterest rate environment and the spread arbitrage excess liquidity caused byspeculative trading and other factors, international short-term capital mainly throughfalse trade, direct investment and underground banks, etc. flow in and out of itscurrent significantly increase the total amount, and the two-way flow accelerated thetrend has become increasingly evident. International short-term capital flows intoand out of large-scale foreign exchange channels put not only makes money supplypassive growth, but also affect China monetary currency and price stability, is notconducive to stable economic growth; hand weakening the independence ofmonetary policy sex, increasing the difficulty of its regulation also affects the controleffect of monetary policy.By using the VAR model of international short-term capital flows and theimpact of monetary policy relationship between the level of depth in the empiricalanalysis, from the analysis results of international short-term capital throughmultiple channels affect the implementation of monetary policy effects, with theopening up of China’s financial industry the deepening and the gradual opening ofthe capital account, the international short-term capital flows on the impact ofChina’s monetary policy will certainly be more and more significant, the formulationand implementation of monetary policy by the validity of the adverse impact ofshort-term capital flows will also be increasing. Therefore, we need from thestrengthening of international short-term capital flows monitoring, improvemonetary policy and financial system, deepen reform its own building three-prongedapproach to reduce short-term international capital flows on the effect of monetarypolicy implementation adverse effects, give full play to the monetary policy effect.