Comment On Western Interest Theory And Ponder Over The Interest Issues In China

As the price of capital, interest rate has been playing an important role in the economy. Interest rate mechanism adjusts the investment, deposits, money supply and demand, and national income. Interest rate policy is based on the interest theories, so the understanding of interest not only directly related to the interest rate policies, but also affects the operation of the entire national economy. At present, China's interest rate liberalization reform has made certain achievements, but there are still many problems, such as the relationship between interest rates not straighten out, a reasonable interest rate structure has not been built up; interest rate policy is not fully functional play. Owing to the lack of original interest theory of our country, it is helpful to reference western interest theories for our interest rate interest rate liberalization,This thesis firstly inspected the inheritance of interest theories. The Emphases of the theory transfer from essence and source of the interest in the early research to the form of interest rate. The analytical methods have undergone a process from partial equilibrium to general equilibrium. The field of the research expanded from the micro to the macro area. The research object extended from the developing countries to developed countries. The infection of interest theories to the real economic is various, including the evolution of interest policy and the chosen of the monetary policy transmission mechanism; it promotes competition and innovation in micro- market, as well as international financial development.On the Marxist perspective, this paper critically summed up some useful perspective of interest theories. Turning to the interest rate liberalization of China, this article asserts that, the results of the liberalization of interest rates should be that interest rate level and structure determined by the market, and the Central Bank's monetary policy can indirectly affect the interest rate by financial market. For restructuring our unreasonable interest rates structure, we should make efforts in the following aspects: cultivating China's real benchmark interest rate, restructure China's modern system according to the risk and term structure of...