Research On The Market-oriented Reform Of China's Interest Rate

It can be said that from the 1930s by now, the study of domestic and foreign scholars on interest rate liberalization hasn't been stopped over. With the outbreak of the recent financial crisis in American and the rapid emergence of market economy in emerging countries, a study on interest rate liberalization has become the focus once again. Main component of this paper is researching the method and effect of interest rate liberalization.Firstly, this paper comprehensively and deeply expounds some classical theories which include finance deepening theory of Ronald McKinnon and Edward Shaw, theory of financial restriction, new institutional finance and theory of financial structure. And then, makes out some useful enlightenment which will benefit our country.Secondly, according to these theories, this paper deeply analyzes the roads of the market-oriented reform of interest rate in America, Japan and Korea that have taken the lead in developing a market economy practice. According to analyze and summarize these countries' experiences and lessons, this paper has drawn a conclusion that the market-oriented reform of interest rate is not equivalent to deregulation but the reform of the price system and the reform' success must depend on the total integration of both aspects.Thirdly, this paper reviews the course of market-oriented reform of China's interest rate and standing multiple angles analyzes in depth the practical effect of market-oriented reform of interest rate in China. And then discovers the problem of the reform and related causes.Finally, with our national life, this paper explores out an improved alignment of market-oriented reform of interest rate, which is more thorough, stepwise and workable.