Analysis On The Effects And Countermeasures Of Double Surplus To China's Economic Development

China has mainiained"double surplus",under both current account and capital and financial account since the 1990's,especially since the new century,and the scale of double surplus has tended to expand.Generally speaking,if a country's current account in the international payments is unfavorable,the capital and financial account is surplus:if current account is surplus,its capital and financial account is unfavorable .During the period of financial crisis,countries affected by crisis would likely to keep double surplus for some time for the purpose of foreign exchange reserves accumulation and macroeconomic situation stabilization. It is rare in the international economic history that China has kept double surplus for almost 20 years.At Present,China's foreign exchange reserves have surpassed one trillion dollars,but the situation of double surplus is difficult to be changed in the near future. In 2006,China became the biggest country holding foreign exchange asset instead of Japan. Most of China's foreign exchange reserves areUS dollars.In the future years,US dollar is likely to significantly depreciate.Once the depreciation expected by economists from all countries happens,China asset will besubject to heavy losses. Even if the worst situation does not happen,the efficiency of central bank monetary Policy will be challenged because of the increased accumulation of foreign exchange reserves.This thesis focuses on analyzing reasons for the long-time double surplus ,the main characters of China's current surplus ,advantages and disadvantages of the double surplus and puts forward to some suggestions for solving the problems.The structure of the article is as follows: The first chapter is the introductory,In chapter two, it describes the basic status of our current double surplus including the definition,reasons,and characters of it. In Chapter three, it focuses on the analysing the advantage and disadvantage the double surplus has brought to the development of China's economic development.In Chapter four, it analysis the experience and lessons that Japan, South korea and Singapore has brought to us for reference in their dealings with the double surplus. In Chapter five, it brings out the measures that we can take out to deal with our current duoble surplus according to the pervious analysis. The last chapter is the general conclusion and author's comments...