Analysis About The Controlling Of International Short-term Capital Flow

It will be an inevitable trend that every financial market opens to the international short-termcapital during the process of inducing foreign investments to develop domestic economy becauseit is the important component of international capital. But a series of financial crisis occurred inrecent years have urged many counties to pay more attention to efficiently supervising thoseshort-term capital during opening domestic financial market.To achieve the aim of supervising short-term capital efficiently needs grasping its flowcharacters and development trends. The first part of this paper analyzes the present situationabout global international short-term capital flowing situation, and then comes out that weshould not only open to short-term capital but also supervise it efficiently. The second partincludes the study on the concept of short-term capital flows, flowing channels and its positiveand negative effects. Based on these analyses empirical researches are made on the existingsupervision theories and practices. The last part analyzes the present situation of Chinesesupervision bureau facing and its supervision effect, and then provides some suggestions for therelative authorities about how to improve the supervision.Combining the traditional concept and classification standards with the new characters of presentinternational short-term capital flows, this paper provides some identifying methods, which aresuitable to the present situation. Especially, the paper makes impersonal analysis on the positiveeffects and explicitly points out that the supervision principle and target should be enlarging thepositive effect while restraining the negative effect via efficient supervision.