Because, 1, the imbalance between the supply and demand of international money cannot determine a country's international balance of payments, but the key lies in the country's ability to earn foreign exchange by exporting goods and the dependence of its economy on imported goods and foreign exchange. 2. The balance of international payments mainly depends on the relationship between the country's resource endowment and economic structure. 3. A country's productivity level often determines its balance of payments. In the years before China's reform and opening-up, due to the extremely backward productivity, export earned little foreign exchange. However, due to the limitation of resource endowment, we have to import a large number of commodities such as crude oil, copper, special steel and machine tools. It is not because of the imbalance between the supply and demand of international money that the balance of payments has been unbalanced for many years and even forced to sell gold and silver to balance the foreign exchange gap. Now China's highly developed productive forces lead to foreign exchange surplus and another unbalanced state, but they have no fundamental causal relationship with the international money supply. Therefore, the traditional monetary analysis theory simply explains the balance of payments with the imbalance of international money supply and demand.