Economy Development And Interest Rate Determinate: An Analysis Based On New Classical Economics

Generally speaking, the determination of interest rate has two basic types: market determining interest rate and government determining interest rate. Studying the former comes down to the determination mechanism issue of market equilibrium interest rate; studying the latter comes down to the function mechanism issue of interest rate policy influencing economy system. And study of first issue is the groundwork of studying second issue.However, modern interest rate determination theories only pay all attention to the circulation field but ignore the yield field. From all appearances, the engendering of interest rate and the role of interest rate playing in economy development both come down to yield field. Thus, modern interest rate determination theories inevitably has a severe limitation, that is, the relation between interest rate and yield field is almost investigated, which will directly influence the ability of these theories to interpret economy phenomena and guide economy practice. For example, according to new classical synthesis interest rate determination theory, the low interest rate policy can promote economy development by expanding investment demand, but this theory can't explain the process in which interest rate effects on economy development by influencing the decision-making of investment and debit and credit, thus this process also becomes "black box" problem of this theory. By all appearances, if these theories could not explain the determination mechanism of interest rate in yield field and the function mechanism of interest rate influencing economy development, then the validity of interest rate policies working out according to these theories was very dubitable. Therefore, how to open this "black box", and to combine yield field with circulation field in theory analysis beyond all doubt is a very important study direction in which we will be very likely to achieve a major breakthrough of interest rate determination theory.We think, the determination mechanism of interest rate and the function mechanism of interest rate policy influencing economy development both have important relation to evolution in division of labor and economy development. Thereby this thesis combines them with the general mechanism of economydevelopment in study. After analyzing Smith and Marx' viewpoint of division of labor and interest rate determination, we establish a new interest rate determination model by using new classical analysis framework and its infra-marginal method, in which we study these issues. The main research contents are as follows:1. The development history and the latest fruit of interest rate determination theory are summarized. The limitation and its reason in present theory research of interest rate determination are analyzed.2. After analyzing the severe limitations of mainstream Hicks-Hansen theory, we study the inherence economy relation between interest rate determination and economy development under enlightenment of Smith and Marx' viewpoint of division of labor and interest rate determination.3. The significance of classifying in researching the relationship between interest rate and savings is put forward, and the savings is classified to two kinds by the motive of saving and the sensitivity to interest rate, that is "gained-motive savings" and "no gained-motive savings".4. A dynamic general equilibrium model with two products and consumer-producers is constructed, in which economy development and debit and credit action are endogenized, and determination of interest rate and value theory are hanged together. Using this model we also research the issue how yield field and circulation field to codetermine the level of equilibrium interest rate and the speed of economy development.5. Basing on the model constructed above, we combine yield field with circulation field and investigate the function mechanism issue of interest rate policy influencing economy development in an economy system.