The TheoryofInternationalIndebtedness was proposed by the British scholar George Goschen in 1861, also known as the balance of payments theory or foreign cashbackinforex supply Forex rebate king demand theory International forexrebateindonesia and cashback forex theory Introduction The Theory of International Borrowing and Lending was proposed by the British scholar George Goschen in 1861. The theory that the exchange Forexrebateking is determined by the supply and demand of foreign exchange, and the supply and demand of foreign exchange is generated by international borrowing, so the international borrowing and lending relationship is the main factor affecting the change of exchange rate The international borrowing and lending relationship mentioned here not only includes trade transactions, but also includes the export and import of capital International borrowing is divided into fixed borrowing and liquid borrowing, the former refers to the borrowing and lending relationship has been formed but has not yet The former refers to the lending relationship has been formed but has not yet entered the actual payment stage of lending; the latter refers to the payment stage of lending international lending said that only when the current lending equal, the supply of foreign exchange is also equal, foreign exchange rate remains stable; when the current debt is greater than the current debt, the supply of foreign exchange is greater than the demand, the foreign exchange rate fell; when the current debt is less than the current debt, the supply of foreign exchange is less than the demand, the foreign exchange rate rose Gersons theory for the first time more systematically from the The balance of payments perspective to explain the changes in foreign exchange supply and demand, and analyze the reasons for exchange rate fluctuations, so his theory is also known as the balance of payments or foreign exchange supply and demand said this theory prevailed in the pre-World War I gold standard monetary system period from the current perspective, the balance of payments is still one of the most direct and important basic factors affecting exchange rate changes, but from another point of view, the international borrowing theory has its historical limitations, it does not explain the basis of exchange rate determination. It does not explain the basis of exchange rate determination and some other important influencing factors The core view of the international borrowing theory The international borrowing theory believes that international import and export of goods and services, capital export and other forms of balance of payments activities will cause international borrowing and lending, international borrowing and lending will cause changes in the supply and demand of foreign exchange, which in turn will cause changes in foreign exchange rates and thus international borrowing and lending relations are the main factors of exchange rate changes International borrowing theory that only the flow of reception is equal, foreign exchange supply is also equal, foreign exchange rate remains stable; when the flow of claims is greater than the flow of debt, foreign exchange supply is greater than demand, foreign exchange rate fell; when the flow of claims is less than the flow of debt, foreign exchange supply is less than demand, foreign exchange rate rose in a certain period of time, if a countrys balance of payments in the external income increases, external expenditure decreases, external claims exceed external debt, then Borrowing and lending can be divided into fixed borrowing and liquid borrowing according to the liquidity of borrowing and lending, and only liquid borrowing will have an impact on foreign exchange supply and demand and thus on the exchange rate. The Keynesian school examines exchange rate movements in terms of the general equilibrium of national income and expenditure, and believes that the growth of GNP will lead to an increase in national income and expenditure, which in turn will lead to a deficit in the balance of payments and depreciation of the local currency; on the contrary, a reduction in domestic consumption and investment will improve the balance of payments and make the local currency appreciate. The Keynesian school believed that a depreciation of the currency would cause a change in the relative prices of imports and exports, which would improve the balance of payments, and the improvement in the balance of payments would lead to a new equilibrium exchange rate. TheoryofForeignExchange) systematically explained the main reasons for exchange rate changes under the gold standard system, and put forward the main ideas of international borrowing and lending said international borrowing and lending: 1. The balance of payments deficit is called international borrowing and lending in excess, and the amount of in excess is the countrys net debt to other countries international borrowing and lending reflects the dynamic differential relationship between a countrys balance of payments Ghosn believes that the main factors triggering international borrowing and lending are the import and export of goods, the purchase and sale of stocks and debts, the receipt and payment of profits and donations, capital transactions, etc. www.taojz.com,　　2. Ghosn believes that the exchange rate depends directly on the supply and demand of foreign exchange, international borrowing and lending relationship is the key to influence the fluctuation of the exchange rate A countrys international borrowing and lending out of the international market, the countrys currency in short supply, the countrys currency appreciation; Conversely, a countrys international borrowing and lending into the international market, the countrys currency supply is greater than the demand, the countrys currency depreciation 3. The former refers to the lending relationship has been formed, but has not yet entered the actual collection and payment stage of lending, equivalent to long-term debt relationship; the latter refers to the actual collection and payment stage of lending, equivalent to the current account balance Ghosn believes that fixed lending on the current capital flow, foreign exchange supply and demand impact has a large uncertainty, only the change in liquid lending will have an impact on foreign exchange supply and demand 4. Interest rate level, credit status, etc. will also have a certain impact on the exchange rate, but the most important factor to determine the rise and fall of the exchange rate is still the international borrowing and lending relationship on the evaluation of international borrowing and lending theory Gersons international borrowing and lending theory for the first time more systematically from the perspective of the balance of payments to explain the changes in foreign exchange supply and demand, analysis of the reasons for exchange rate fluctuations, so his theory is also known as this theory prevailed in the pre-World War I gold From the current point of view, the balance of payments is still one of the most direct and important basic factors affecting exchange rate changes, but on the other hand, the international borrowing theory has its historical limitations, it does not explain the basis of exchange rate determination and some other important influencing factors The doctrine is valid under the gold standard system This theory explains the causes of exchange rate changes (by foreign exchange supply and demand, that is, the flow of It proved that the imbalance of the balance of payments is one of the main causes of exchange rate movements, but it does not answer the question of how the exchange rate is determined, nor does it explain the exchange rate movements caused by the increase or decrease in the quantity of currency in a paper money circulation system. It affirmed the role of state intervention in exchange rate movements