Will affect the money supply. International capital flows affect a country's balance of payments and money supply through the increase or decrease of foreign exchange reserves. A large amount of short-term capital is often aimed at speculation and preservation, which will promote the occurrence of domestic inflation. It will also affect the exchange rate policy. With different exchange rate systems, the mechanism of international liquidity will be different from that of foreign exchange market and international financial market. When the scale of short-term capital flow has a serious impact on a country's foreign exchange market, the relevant government departments will take effective intervention measures. Historical lessons and realistic choices, according to IMF data, there are 700 million dollars of hot money in the international market, equivalent to one-fifth of the world's annual GDP. Speculation has become an important reason for the turmoil in the world financial market.