The Interest Rate Market Research

This paper focuses China's interest rate liberalization reform. Chapter 1 analyzes interest rate theory from Mashall's to Keynes' to Roberstson's interest theory and we find out that interest rate liberalization is one of basic economic principles, then studies three interest rate policies in economic developing: interest rate regulation, financial deepening and financial restraint, as the theoretical basis for China's interest rate liberalization reform. Chapter 2 through an empirical analysis on China's present interest rate situation including interest rate structure and problem, testifies that interest rate liberalization is of great importance to China. In Chapter 3,from a comparative and an empirical analysis of interest rate liberalization reforms in foreign countries, the author concluded the success of interest rate reform lies on four factors, then analyzes China's economic situation and find out there are some disadvantages in China at present. According to this, the author points out there must be a lot of risks if China deregulates deposit and loan interest rate immediately. In the last chapter, the author suggests that various economic sectors should make some preparations for future interest rate reform and China should deregulate the deposit and loan interest rate in a proper order. He insists that the most important thing at present is to make good preparation and continue the reform with persistence.