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Research On The Interest Rate Marketization In China

Posted on:2004-02-01Degree:MasterType:Thesis
Country:ChinaCandidate:Z X ZhengFull Text:PDF
GTID:2156360092991650Subject:Economics
Abstract/Summary:PDF Full Text Request
Since beginning of the 1980s, China has already begun to the reformation of the financial system, but compares with other reformations in the economic system, the reformation of the financial system is obvious behind schedule, especially the step is very hard in the reformation of the interest rate system, it has confined the whole reformation of economic system. As the world economy becomes globalized, especially as the financial market becomes more and more globalized, it is very urgently to push forward the interest rate marketization in China. This paper will analyze the interest rate marketization in China to provide a little support to this reformation.This paper is divided into five parts:First, the theories of the interest rate marketization. The author introduces the theory of the financial development since 70 ages of last century, especially the interest rate liberalization.Second, the author analyzes the reason why the policy of low interest rate was controlled by the government and why to push forward the reformation of the interest rate marketization is very urgently in China. And point out that the level of the interest rate by strict with control is determined by endogenesis in our economy development, and strengthened in the gradual reformation, it is a reasonable and necessary system in the economy developing. But the localization is obvious in the interest rate control, and the reformation of the interest rate is very urgently.Third, the obstacles and the conditions in the reformation of the interest rate marketization. First, the author draws lessons from the international experiences, and points out that to carry out the interest rate marketization, it must have thereinafter conditions:(1) the foundation of the microeconomic is sound;(2) the environment of macroeconomic is stability;(3) the market system is sound. But, now the financial market is that (1) the foundation of the microeconomic is not sound;(2) the developing of the market is still in the early stage;(3) the ways of the fmancials supervision is not onlysingleness but also flabbiness. So it is very difficult to push forward the reformation of the interest rate marketization. However, it is not to say that the reformation will be abandoned, and it will be shelved and forgot. In practice, to push forward the reformation of the interest rate marketization is a very good time because the reformation of the economic system has been passed by than 20 years in China, we have some good conditions (1) the environment of macroeconomic in China is stability, the run of the economic is good;(2) The management of the flexibility interest rate is the main method in the managements of the interest rate;(3) In recent years, the practice of National Central Bank in the interest rate marketlization has been prepared a good chance to carry out it;(4) The degree of the financial repression in China is not deep. The strike of the interest rate marketization to the economy is not very serious.Fourth, the effect and result about the interest rate marketlization. In this part, first, the author analyzes the effect of the total about the interest rate marketization in one country's economy, especially to the economy growth. And points out that the interest rate marketization is very important influence on the economy growth. Second, the author also discusses the effect of the interest rate marketization from two aspects: the economic main body, the economic variable. At the base on the top, the author also discusses the relationship between the interest rate and the economy growth, citizen saving, investment of enterprise. And points out:(l) the relationship is not obvious between the economy growth and the nominal interest rate, but the relationship is negative correlation between the economy growth and the actual interest rate. (2) The relationship is obvious plus correlation between the rate of growth in the citizen savings balance and the nominal interest rate of saving, but the relationship is obvious negative correlation betwee...
Keywords/Search Tags:Interest Rate Marketization, Interest Rate Control, Financial Repression, Gradual Way, Radical Way
PDF Full Text Request
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