Based On The Concept Of Development In The New Financial Rate Market-oriented Policies And Economic Growth

Growth and stablity are two main themes of every country's economic development,and they are also two main conflicts through the whole process of economic development. After the depression of 1930's,Keynes' economics came into being,and then macro economic policy played the role of equlibrium between them. Monetary policy had important obligation to correct economic development. In the Keynes' economic world,interest rate "always stayed in the situation of being low and regulated,so as to expand the investment demand,reduce the investment cost and speed the investment growth.In 1973,Mckinnon and Shaw created Financial Development Theory. In the theory,traditional rule of interest rate was broken,and the common thought was that interest rate policy would play more active and pliable role on moblizing financial resource and speeding economic growth. After that,under the influence of financial yeasty,especially the East Asia Crisis of last century,people more rationally look the economic relationship in the interest rate liberalization,which should be dealt with properly.The concept of "new financial development viewpoint" is presented in this paper. Chapter one introduced the relationship between financial development and economic growth,and denoted that developing country kept the Keynes' road,restrainted financial growth and interfered high-efficient economic growth when making financial development policy. Chapter two reviewed the history and reason of interest rate regulation. Chapter three related the route of financial development theory and all kind of opposite viewpoints,and pointed out three main characters of financial development theory. Chapter four discussed the relation of financial crisis,financial tenderness and interest liberalization,and presented the true reason of the bad effect of other reform measure. Chapter five introduced the whole progress of Chinese financial reform,presented three main characters of Chinese financial reform. Chapter six focused on the financial environment of Chinese development. The last part is the paper's conclusion,which includes and emphasizes all the main themes.