Research On The Risk Prevention Of Deregulation Of Chinese Capital Projects

Since China joined the WTO on December 11,2001,its economy has developed rapidly and has been continuously integrated into the trend of economic globalization,with the rapid increase of China's total economic output,RMB has gradually become the world currency.It has gradually played the role of settlement media,payment means and storage means on the world stage.It not only has an important impact on China's economic development,but also has a far-reaching impact on the international community.Deregulation of capital account is an important task that China has agreed with the World Trade Organization after China's Entry into WTO,and it is also an urgent problem to be solved in the development of socialism with Chinese characteristics in the new era.The deregulation of capital account can make international capital flow freely all over the world,improve the efficiency of capital allocation,promote the internationalization of financial system and the internationalization of RMB.However,with the deregulation of China's capital account,international capital will frequently enter and leave our country.On the one hand,large capital inflow will cause inflation,on the other hand,large capital outflow will cause currency devaluation,these affects the stable operation of the domestic economy.At the same time,under the background of immature RMB floating exchange rate system,with the gradual relaxation of capital account control in China,the independence of monetary policy will be weakened.Taking the risk prevention of capital account deregulation in China as the research object,this paper probes into the risk of capital account deregulation and its countermeasures.This paper first introduces the background and significance of the study,summarizes the research contents and methods,summarizes the relevant literature,summarizes the three major theories of capital account deregulation,then expounds the development process and difficulties of capital account deregulation in China,and analyses the risks of capital account deregulation,mainly the affection of the stable operation of domestic economy and the weakness of its monetary policy independence.Thirdly,this paper chooses Japan,Brazil,Russia and Thailand as the research objects,studies the history of capital account deregulation in these countries,summarizes the successful experience and failure lesson of these countries,and analyses the reference significance of these countries' experiences to capital account deregulation in China.Finally,by deregulating inflation risk and currency devaluation respectively,empirical research on value risk and the weakness of the independence of monetary policy and combining with theoretical analysis,this paper puts forward some countermeasures and suggestions for dealing with the risk of deregulation of capital account in China:China should maintain a good level of economic development,make rational use of monetary policy tools to regulate the market,carry out the reform of interest rate marketization and floating exchange rate system,and so on.It also puts forward exploring the idea of the establishment of early warning system and emergency mechanism for deregulation risk.