Research On China’s Interest Rate Marketization Practice Under The Marxism

The marketization of interest rate has always plays a big part of China’s financialreform. During the past thirty years’ practicing of the Reform and Opening Up policy,China has been exploring the reform of interest rate marketization all the way long.The marketization of interest rate, is basically refers to let the market decide thepricing of interest rates, the final goal of this reform to build a market-oriented interestrate system, which is to say, a deposit and loan interest rates mechanism based on theguidance of the central bank’s benchmark interest rate control policy, but decidedmainly by the demand and supply conditions of the market. In July2013, the loaninterest rates has been fully opened. This is a huge breakthrough of the interest ratemarketization in China. Early in this year, the central bank governor Zhou Xiaochuanannounced again that China’s interest rate marketization reform has entered the finalstage and the pace should surely be accelerated. His words showed a great confidenceof China’s interest rate marketization reform.In "Das Kapital" third volumes, Marx analyzes the nature of interest and interestrates, and that average profit rate has a decisive effect on interest rate, and also howthe supply and demand situation on the market impact the lending rates. Thesetheories are of guiding significance for the reform of interest rate marketization inChina. Through a thorough study of Marx’s interest theory can help us clarify theideas in the implementation of the interest rate marketization reform, and also help usfind the right direction.In this paper, the author deeply study the Marx’s interest theory, and use thistheory to analyzes the connotation of the marketization of interest rates, and alsodiscussed the successful and the fail experiences in the foreign country’smarket-oriented interest rates reform. In the course of history review of China’smarket-oriented interest rate reform at the same time, the author analyzes the statusquo of China’s interest rate marketization and likely problems foreseen. By learningthe Marx’s interest theory and foreign experiences, the author drew a conclusion thatour country should get inspiration of the Marx’s interest theory during the practice of China’s reform, and at the same time, a “gradual reform experience" is suitable wayof our own reform practice, just as America and Japan successfully did. On the otherhand, during the implementation process, we should also pay attention to risk controland influence on the financial industry once the reform has been completed, clarifythe fundamental difference between "regulation" and "control", and strengthen theguiding role of the central bank.The author believes that, in a year or two, we will definitely usher in a new era ofinterest rate liberalization in china.