The Research On The Effect Of Interest Policy In China

As finance market develop deeply, the interest rate has become an important bridge connecting the money market, the capital market, the commodity market and the foreign exchange market, and it is also a main lever that regulates the local capital and the international capitals fluxion. In addition, it is an important variable which connect the real object section and the financial section. Along with the development of the market economy, the finance has already become the core of the modern economy. Being the price of the funds, the function of the interest rate in the market has become clearer and clearer. The interest rate not only reflects the change of the financial market and the basic circumstance of the whole economy, and also become an effective means of the National Central Bank to adjust macroscopic market indirectly. The economists think universally that the interest rate did not have that big influence on economic life like now. Because of such importance of interest rate, flourishing countries and developing countries all take the interest rate as an important policy tool to promote economic development. After our country's reform and opening to the outside world, the economic system reform turns deeply and the financial market develops, the transmission of the monetary policy began to transfer from the purely direct loan transmission to loan, interest rate and the property price etc. more channel to transmit. Seeing from the direction of the reform, the interest rate channel has become the important channel of the monetary policy transmission, especially in the near future, our country's National Central Bank adopted the measure of adjusting the interest rate policy for many times according to different economic position of our country. But the result of the interest rate policy did not perform as person's anticipation. The basic reason is that the transmission efficiency of the interest rate signal is not high because the policy transmission chain is blocked in the delivery process from financial realm to the real economy. Therefore, it is academic and realistic that we do some research on the monetary policy interest rate transmission mechanism of out country and put forward the measures to perfect the interest rate channel then the monetary policy can perform effectively. The full text can be divided into the following parts: Firstly, introducing of the theory of the related theories of western monetary policy interest rate transmission mechanism: the monetary policy interest rate transmission mechanism theories of Sweden School, the interest rate channel transmission mechanism theories of Keynes School, the model of IS-LM curve, then analyzing the prior condition that these theories can perform effectively. In the same time, introducing the actuality of the research on the interest policy in our country. Secondly, elaborating the interest rate channel tool of our country and its effect mechanisms, reviewing the changing of our country's interest rate policy and analyzing the interest rate transmission mechanism status in China with great deal of data material. After that, based on the essential analysis of the effect of interest rate transmission mechanism in China, the article discusses the hindering factors that restrict the role of interest rate mechanism. And fourthly, the outlet to perfect the interest rate transmission mechanism in China.