Research on the regulatory mechanism of capital inflow and capital account opening on inflation control

Huarui Yao

doi:10.47297/wspceWSP2516-251912.20240805

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Research on the regulatory mechanism of capital inflow and capital account opening on inflation control

Volume 8, Issue 5

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Research on the regulatory mechanism of capital inflow and capital account opening on inflation control
Research on the regulatory mechanism of capital inflow and capital account opening on inflation control
Department of Intelligent Accounting Manaagement, Guangdong University Of Finance and Economics, Accounting ManaagementGuangzhou, China
Vol. 8, Issue 5, Pages: 76-80(2024)
Published： 29 October 2024 ，
DOI：10.47297/wspceWSP2516-251912.20240805
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Yao Huarui.Research on the regulatory mechanism of capital inflow and capital account opening on inflation control[J].Creative Economy,2024,08(05):76-80.
DOI：

Yao Huarui.Research on the regulatory mechanism of capital inflow and capital account opening on inflation control[J].Creative Economy,2024,08(05):76-80. DOI： 10.47297/wspceWSP2516-251912.20240805.

摘要

Abstract

This paper explores the mechanism and regulatory effect of capital inflow and capital account opening on inflation control

and analyzes how capital inflow has direct and indirect impact on inflation through money supply expansion

exchange rate fluctuations and asset price increases. At the same time

it studies the weakening of monetary policy independence and the change of inflation transmission path caused by capital account opening

pointing out that while capital account opening brings free flow of funds

it also increases the complexity and uncertainty of inflation fluctuations. This study emphasizes the necessity for policymakers to balance between opening up capital markets and maintaining economic stability

and optimizes inflation control strategies by flexibly using tools such as monetary policy

exchange rate management and capital flow control

so as to ensure the sustained and healthy development of the economy.

关键词

Keywords

capital inflowcapital account openinginflation controlmonetary policyinflation transmission mechanism

references

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