Abstract:

As regards the representative models of adjustment of balance of payment in the world, namely, American Model and Japanese Model, the model of adjustment of balance of payment of a country should be formulated according to the theory concerned and the condition, the economic base, the period of economic development. In the coming decade, China's demand for foreign exchange will be increasing constantly, but the supply will be restricted. As a big developing country in the period of economic takeoff, China should select the feasible short-term and long - and - medium - term objectives of adjusting balance of payment to promote the sound, stable, and sustainable development of economy.

Key words: balance of payment, model of adjustment, current account, capital account