Study Of Interest Rate Policy In Effect

In the developed market economy, interest rate is not only the price of fund which causes great influence on the individual savings and consumption, the investment of the enterprise, the operating decision of financial institution. However, with the development of world economy and symbol economy, accompanied by the development of world economy and global integration of trade and finance, interest rate will play a more important role in economy, by now, interest rate has been an important economic indicator responding the situation of macro~economy. Interest rate lever has been used frequently in macroeconomic control, interest rate policy has become an important measure for central bank to adjust the supply and demand of money, then control the national economy.Under market economy, interest rate is determined by investment, savings and the demand and supply of money, and being highly related to national income, therefore, a change in interest rate is the comprehensive response of the commodity market and money market, both the current situation of economy and the expectation can be embodied by the change of interest rate is the barometer of the economy. The central bank can regard the interest rate as the mediate objective and operating instrument of monetary policy.The smooth transmission of central bank's interest rate policy is on the condition that the sufficient interest rate elasticity, interest rate elasticity refers to the change in interest rate which will cause the economic unit adjust its lending and borrowing behavior. Not only the change in interest rate causing the adjustment of portfolio according to the basic interest rate on the capital market but also the adjustment for the demand of consumption and investment according to the commodity market are highly related to the price elasticity. The basic interest rale can not be transmitted smoothly without sufficient price elasticity. The elasticity of interest rate determines the speed and the depth of interest rate policy influencing the market.The sufficient elasticity of interest rate is conditional. The level of interest elasticity is highly related to the degree of market-oriented economy, monetization, credit, and the reasonable management system: The micro basis being responsive to interest rate; Financial basic environment for the smooth transmission of interest rate policy; Flexible interest rate management systemSince China's opening up and reform, the interest rate issue and interest rate policy have been attached more importance, it demonstrates that the role of interest rate pol icy has gradually increased in macroeconomic control. In China, the interestrate lever is not used as flexible and effective us the developed countries for the factors of history, economy and system, among these factors, the essential factor is the shortage of micro basis and rigid controlled interest rate system. In order to increase the validity of the interest rate policy, the three important issues should be resolved: The basis of implementing interest rate policy. Increasing the elasticity of interest rate policy responding by microeconomic body, requiring the microeconomic parts participating the financial market and being adjusted by the interest rate policy becoming legal man, thus the reform of state owned enterprises and state owned bank will be critical; Establishing the basic environment for the implement of interest rate policy, further perfecting the financial market; Setting up valid market oriented interest rate management system.This thesis systematically analyzes the effect of interest rate pol icy of China and puts forward distinctive points, from micro perspective to macro perspective by adopting western financial theory, integrating the experience of developed countries with China's reality. It also indicates the valuable suggestion for the countermeasure of enhancing the effect of interest rate policy . The purpose of the above analysis is how to utilize the interest rate lever effectively and flexibly and further exert the...