Trade Flows and Welfare Effects of a FTA among China,Japan and South Korea:A Partial Equilibrium Calibration Approach;

By using neo-classic research method on wage and employment determination in the public sector at partial equilibrium,the author finds out that in order to minimize the budget, the best choice is not to control the budget itself but to determine the organization first.

The characteristics and premises of general equilibrium and partial equilibrium from "Coace Theorem" are different, it is the concrete course from the part to the former that through demonstration or model effect, study and substitute effect and improvement of compensation condition, the cost and benefits of general equilibrium are changed and the general equilibrium is realized.

How to realize the internal equilibrium and external equilibrium is one permanent objective of any open economy.

By reviewing the established long-run equilibrium exchange rate framework based on internal equilibrium,this article tries to introduce an external constrain,and then extends the theory into one based on both long-run internal and external balance.

With the development of Chinas opening-up,we should pay more attention to external equilibrium except the realization of internal equilibrium.

On discussing Swan Diagram and Mundell Assignment Rule,many works on international finance divide the economy into four disequilibrium states,and give each of them a policy mix to approach both internal & external equilibrium.

It is concluded that the dominant product technology has brought about the coevolution between punctuated equilibrium and local equilibrium because of its character of self-organization and its capability to advance productivity.

In general,internal balance determines external balance,but external imbalance can also react on internal balance.