Empirical Analysis Of Interest Rate Policy In China During The Transition Period - On The Interest Rate Market

Since I 978,our finance reform has made a great progress while our reform and openness is proceeding step by step. The interest rate policy that is an important sector to finance system has been changed very much. While the market of economy is policy of interest rate and to adjust macro--economics by the interest rate. But state-owned firms and commercial banks which are playing important role on the economic is "soft-budget-restrict" and our economic and finance market is not developing, marketization of economics is low, so 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 microeconomics principle part control to 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 1978; then the author calculated the relativity between the change of interest rate and the variable of macro-economics mostly adopting the method of demonstration and the tool of statistical , drew the conclusion that the variable of macro- economics lacked elasticity to interest rate, and analyzed this phenomenon, at the same time, the author explained that the interest rate has not been a perfect media-aim as the tool of central bank in the actual economical condition. At last, the author put forward the next aim the reformation to interest rate rnarketization step by step.