The balance of payments is a monetary record of all economic transactions arising from all political, economic and cultural exchanges between residents and non-residents in a certain period of time. A country's balance of payments is mainly determined by current account, capital and financial account, while the profit and loss of current account depends on the competitiveness of a country's goods and services in the international market, and financial account mainly depends on the changes of non-economic factors such as interest rate, risk and return on investment in the financial market.

According to the data released by the State Administration of Foreign Exchange, China's balance of payments has continued to grow rapidly, from11702.3 billion dollars in 2003 to 41897.8 billion dollars in 2008. Shuangying? Mode. A large balance of payments surplus leads to a large increase in domestic foreign exchange and rising prices. Therefore, it is necessary to cooperate with appropriate fiscal and monetary policies to adjust the balance of payments.

Macro-fiscal policy refers to the government's policy of managing national economic demand by adjusting taxes and government expenditures. Monetary policy refers to the policy of a country's government and financial authorities to realize the demand management of the national economy by regulating the money supply.

The theory of combining fiscal policy with monetary policy is based on the model put forward by Mundell and Swan, which solves the internal and external equilibrium in the open economy through the combination of expenditure conversion policy and expenditure increase and decrease policy. Mundell believes that when the domestic macro-economy and the balance of payments are out of balance, fiscal policy should be adopted to solve the domestic real economic problems such as economic recession, and monetary policy should be adopted to solve the external problems such as the balance of payments, which is relatively more efficient. In the case of inflation and balance of payments surplus, it is advisable to adopt a tight fiscal policy and an expanding monetary policy. For example, reduce government expenditure, increase government transfer, increase taxes and lower interest rates.

Of course, the actual economic life is far more complicated than the theoretical discussion. Combined with the hot scene of China's capital market in 2007-2008, in order to control the excessive capital bubble, the state adopted a moderately tight fiscal and monetary policy in 2008, such as raising the deposit and loan interest rate, raising the statutory deposit reserve, etc., to control investment and stabilize prices. When the subprime mortgage crisis turned into a global financial crisis and began to erode the real economy, the China government changed its policy into a moderately loose fiscal and monetary policy.