The Study Of The Effects Of Interest Rate Policy On Monetary Policy

Before we execute the policy of reforming and opening-up, there is no explicit record about the monetary policy. Since 1978,our finance reform has made a great progress while our reform and open-up is proceeding step by step. The interest rate policy which is an important sector to finance system has been changed greatly. The central bank begins to adjust macro-economics with the interest rate policy and the relationship between the interest rate and economics variables becomes more and more close. But state-owned firms and commercial banks which are playing important roles on the economics is "soft-budget-restrict", and marketization of economics is so low that the relationship between interest rate and relative macro-economics is less close. The effect of adjustment to the interest rate on the economics is not remarkable. In order that the policy of interest rate has a good effect on adjustment to economics, we must carry further on the marketization of economics, enhance the micro-economics principle of controlling cost, and perfect the system of finance market, meanwhile, carry on marketization of interest rate.First, the author briefly review the policy of interest rate in China since the foundation of our country; then the author calculated the relativity between the interest rate and the money tools, mostly adopting the method of statistics . The author draws the conclusion that though the interest rate policy has some effect, it has not been a perfect media-aim as the tool of central bank in the current economical condition. At last, the author puts forward the aim-the reformation to interest rate marketization step by step.