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On the adjustment mechanism of balance of payments policy.
A: (1) Fiscal policy and monetary policy. When a country has a balance of payments deficit, it can adopt a tight fiscal policy or a tight monetary policy to curb the total demand, thereby reducing imports, increasing exports and restoring the balance of payments. On the contrary, when there is a J gap in the balance of payments, expansionary fiscal policy or expansionary monetary policy can be adopted for adjustment.

(2) Foreign exchange buffer policy. A country uses changes in official reserves or temporary loans to offset excessive foreign exchange demand or supply. This policy is simple and feasible, but it is only suitable for solving the short-term imbalance of international payments.

(3) Exchange rate policy. Refers to a country using exchange rate changes to eliminate the balance of payments deficit. When a country has a balance of payments deficit, the authorities devalue its currency to enhance the international competitiveness of export commodities and weaken the competitiveness of imported commodities, thus improving its balance of payments situation. On the contrary, when a country has a balance of payments surplus, the authorities will promote the balance of payments through currency appreciation.

(4) Direct control policy. Direct control policy refers to the government's direct intervention in foreign economic transactions to achieve balance of payments, including trade control, foreign exchange control and financial control. Direct control is quick to adjust the balance of payments, less dependent on the market mechanism, flexible to use, different projects are treated differently, and has little impact on the domestic economy. However, the direct control policy can not fundamentally solve the imbalance of international payments, and it is easy to cause retaliation from trading partners.