Study On Changes Of Interest Rate System In China

In recent years, with the deepening of reform, more than 95 percent of our consumer goods'price and more than 85% industry production's price as well as almost all the labor price have been decided by the market. It indicates that China's entire market-oriented economic system has made considerable achievements. However, the pace of financial sector's reform is comparatively lying behind. An important indication of this is that in the financial resource allocation process, that is, the rate as the prices of monetary funds is still controlled by non-market-oriented powers, e.g. the government. Specially, the pace of the reform of the interest structure not only lie behind that of overall economic reform, but also the reforms in financial sector except this. Therefore, it is necessary for us to have a further study on China's interest rate system's reform.Because many countries in the world have more experience of market system reform in which include the reform of interest rate system than that of China, in the interest rate, we have the necessity of learning from the achievements and/or summed up the lessons of the failure of certain countries. To make a quick overview of the history of the world economy's development, until now, the interest structure of the western world has experienced the stages such as liberalized interest structure, controlled interest structure and market-oriented interest structure. From the analyses it is not difficult to draw the conclusion that, in fact, , the process of the liberalized interest system to the controlled system then to the market-oriented interest system is a gradual process, from low-level to high-level and from complete liberalized to directly controlled then to indirect controlled. So far reform of market-oriented interest rates in the world have been 20 years of practice. In this process many countries really benefit a lot from this, the financial efficiency have been improved, and optimize the allocation of funds, the entire economy and the financial system has improved, whereas certain countries suffered setbacks, even severe economic and financial crisis, some retrogression. This makes us to think deeply, in China's special conditions, where the interest rate system reform should move towards.In view of this, according to the Western countries'changes of the direction of the interest rate structure for reference and through the process in each stage of interest rate policy after the foundation of People's Republic of China, according to this, this thesis analyzes the content, the charateristics, the reasons and the achievement of interest rate polic in each stage, and to find the similarities and differences of the interest rate structure changes with performance of Western countries. Finally it is concluded that the change of China's interest rate system is the same to Western countries, from the controlled to the market-oriented interest rate system to be an inevitable trend and the objective requirements of economic development. But our country's market-oriented interest system is not good enough, comparing to some countries successfully finished the market-oriented reform. And in view of China's national conditions, to start rashly the further market-oriented interest reform is lack of some necessary conditions. So we cannot complete market-oriented interest reform as certain western countries in a relatively short time but adopting the progressive way.In this thesis, according to the following logic, at first it discusses the changes of interest system in the history of the world economy so to track caused the thinking for China's changes in the interest rate structure. Then it analyzes the interest rate structure under specific historical trajectory interest rate policy, performance respectively in the planned economy period, the mixed period and the market-oriented period, to answer why should a market-oriented issues, the final date of China's market-oriented interest rate has been achieved, and further market-oriented reform of interest rates the obstacles, risks, and so on, in-depth how to answer the question of market-oriented reforms.This innovation, based on the author's knowledge, of this thesis in the following areas are as follows: First, in accordance with China's reform and the planned economy period before the planned economy period of the degree of interest rate controls will be different from the two stages respectively known as the interest rate structure on the interest rate structure and the control system of strict control so that the characteristics of their relatively clear. Second, China has a clear market-oriented interest rate can be an inevitable trend to strengthen our confidence in the market-oriented reforms. Third, given what the conditions are mature for the marketization of interest rates further, especially how to completely opening up the deposit and loan interest rates policy recommendations.