Study Of International Short-term Capital

Since the seventies of the last century, a tide of financial has swept the entire world-the continuous innovation of financial means, the speed-up of the progress of the finance market's liberalization, internationalization and integration of various countries of the world, which makes capital circulation more short-term and mostly in the form of securities; therefore, the international short-term capital has become the most active power of today's world economy. As far as our country is concerned, the convection of transnational capital circulation has become more and more distinct since the nineties of the previous century especially the reform of exchange regulations in 1994. For several years, the rare phenomena have continued-favorable balances of both current items and capital items of international revenue and expenditure, coexistences of the inflow of foreign capital and the surplus of domestic deposit, and coexistences of the great inflow of international capital and the large-scale flight of domestic capital. In order to solve such a problem, this article attaches a positive study to the capital flight in China and puts forward suggestions about policies and measures of the administration of the circulation of international short-term capital based on rational economic analyses.