Research In Interest Rate Fine-tuning Of China's Macroeconomic Regulation And Control

In recent years, China has continuously improved its ability and level of macroeconomic regulation and control. The mode of macroeconomic regulation and control presents new characteristics. The precise "fine-tuning" intervention is replacing the substantial regulation of curing the "injury deep into bone". There are two ways to regulate and control macroeconomic performance when interest rate is regarded as an important tool:rough adjustment and fine-tuning. Base on the accurate positioning of China's current macro-control, the change of rough adjustment into fine-tuning has become an irresistible trend. Frequent and slight adjustment of interest rate can help avoid impacts of economic inertia and confine the goals of macroeconomic policy within an appropriate range. With focus on fine-tuning of interest rate and by analysis of its theoretical foundation, this paper attempts to examine the details of its practice and aims to provide a theoretical and practical frame of reference closer to economic realities for the mode of China's interest rate regulation in an effort to come up with insight into the effective implementation of China's interest rate policy.The paper first makes an analytical study of representative theories regarding interest rate and its macro-control functions and clarifies that researches on China's interest rate policy should adhere to the guidance and direction of Marxist theory. Based on the above, it discusses the development trends of China's macroeconomic regulation and control under the new situation and holds the view that a modest regulation on macroeconomic performance by means of interest rate as a fine-tuning tool offers a new direction for developing China's socialist harmonious economy. By theoretical and empirical approaches, it conducts a discussion on operating environment of interest rate fine-tuning to demonstrate the effects of implementation of China's interest rate policy. The paper then describes the objective mode of China's fine-tuning of interest rate through experiences from abroad and in accordance with the detailed requirements of China's economic development. In the end, based upon rational considerations for China's economic system and policy environment, it sets forth some proposals regarding China's institutional innovation of interest fine-tuning.By both theoretical and empirical studies, the paper draws some conclusions, which accord well with China's economic development, that fine-tuning of interest rate has already been provided with groundwork for its implementation in China's macroeconomic regulation system. To give full play to implementation effects of China's interest rate fine-tuning, on the one hand, an objective mode suitable for China's national conditions should be established; on the other hand, follow-up reforms are also needed for interest rate policy from the institutional and policy perspectives.