Short-term capital that frequently flows around the world for the purpose of chasing interest rate spreads or exchange rate changes. The most active part of international short-term capital. Because of its frequent transfer around the world, it is also called hot money, just like hot money. During the great crisis in 1930s, it existed in large quantities, which did great harm to the financial stability of some countries. During the crisis of the international monetary system at the turn of the 1960s and 1970s, there were also a lot of hot money wandering between hard currency and soft currency, engaging in foreign exchange speculation, which aggravated the turmoil in the international financial market. Another meaning of hot money refers to a special form of short-term borrowing capital that is freed in the process of reproduction. Usually, without any accumulation, this kind of liquid monetary capital can be formed by various pure technical means, such as the expansion and concentration of banking business and the saving of circulation reserve. In addition, some profits and other personal income can also temporarily form hot money. The continuous outflow and inflow of hot money will completely increase its total amount, which has nothing to do with actual accumulation. Bankers and money capitalists often use hot money to engage in currency speculation in order to obtain huge profits. When this kind of speculation crosses national boundaries, the above-mentioned hot money is formed.