Market-oriented Reforms In China's Interest Rate Thinking

The marketization of interest rate is a significant task of the financial reform in china. In recent years, many researchers have been doing a lot of theoretical work in the field, while our government has made some policies and gradually carried on the process of marketization of interest rate. To understand well what marketization of interest rate is, it's significance, what its target is, the basic condition, the suitable procedures, it's risk, and so on, will be very important to the reform of the marketization of interest rate. This thesis aimed at making theoretical analysis in the field, and setting up a framework for the marketization of interest rate. The thesis consists of 8 parts as follows: Chapter 1, The system of the managerial interest rate of china: the existing problems and their reasons. There are some problems in the managerial system of interest rate of china, such as: the managerial system of interest rate is rigid, the transit mechanism and structure of interest rate have some problems, it harms the social profit, and so on. The system of interest rate has been formed during the long-term planned economy, and china is also in the period that the economy is composed of both planned economy and market economy; on the other hand, whatever in developed countries or developing countries, their financial reform have all experienced the period that the interest rate changes from being strict controlled to marketization. Chapter 2, Meaning and the significance of our marketization of interest rate. The marketization of interest rate is not the same of the interest rate freedom, it means that the structure and the level of interest rate mainly determined by the relationship between supply and demand of fund in market. But it doesn't exclude the governmental control and intervention, and the measures of governmental control and intervention should change from direct way to indirect one. The marketization of interest rate is significant in our economic development. It is the necessity of building up the market economicsystem of china, it is the objective requirement for the intrinsic functionof interest rate to give full play to adjusting and controlling the macroeconomy effectively, it is the demand for the system reform of ourstate-owned firms and banks, and it is also the need for-china enter theWTO and participate in the international economyChapter 3, The experience and the present sitllation of the interest ratereform.The reform of interest rate totally experienced three Stages. the firststage started in l978 and ended in l990,in the period, main adjustmentof the level of interest rate; second stage form l990 to l992, mainadjustment of the structure of interest fate; the third stage from l993 topresent, main reform of mechanism of interest rate, the reform aimed atmaking the interest rate become significant tool fOr resource allocationand macroeconomic control. The chaPter reviews main doings of theabove three stages, concluded experiences and lessons, and madeobjective evaluation for the effect of our interest ratO reform throughpositive anaIysis.The chapter 4, The risk in the marketization of interest rate of china.This chapter mainly discusses the financial risk in the process of themarketization of interest rate of china. The reform is a complex systemproject, we must be well prepared tO fully understand the possible risk, soas to take necessary and effective measures to guard against the risk anddissolve it, and run the reform smoothlyThe chapter 5, The objective analysis for the conditions of themarketization of interest rate of china.Provided with c...