The Research Of "Interest Rate Corridor" 's Impact On Short-term Interest Rate Fluctuations

At this stage,the operational framework of China's monetary policy is still dominated by quantitative regulation.Since the 1980 s,Western countries have gradually changed the mode of monetary policy from quantitative regulation to“price” adjustment.The operation framework of monetary policy dominated by“price” regulation and control models has been formed.However,as Interest rate marketization progresses steadily and steadily,and the financial market is plentiful and sophisticated,traditional quantitative adjustments are difficult to make scientific and effective financial resources in financial markets.The negative impact of this quantitative-typed operation framework of monetary policy is becoming more and more prominent,and the demand for the transition from quantitative regulation to price regulation of monetary policy is increasingly urgent,Interest rate regulation is the most important means.Under such economic background,studying the effectiveness and development prospects of the interest rate adjustment method during the reform period is very meaningful,such as the transformation from dual-track approach to single track approach,promoting the marketization of interest rate progresses promoting the construction of the financial system and financial system and enrich financial markets and so on.Therefore,it is significant to study the regulatory mechanism of China's interest rate corridor.The paper analyzes the condition and problems of current economy,and combines some related theories and concepts of monetary policy to elaborate the background and reasons for transformation of the monetary policy operational framework in China.,and make a point of the feasibility and necessity ofimplementing the "interest rate corridor".By sorting out related domestic and overseas researches about “interest rate corridor”,we have roughly grasped the research status of this topic in,and then summed up the experience of Western countries which have implemented the “interest rate corridor” in practice.The experience will provide some guidance for the construction of China's future "interest rate corridor." The GARCH model is used to analyze the effects of the“interest rate corridor” on the fluctuation of short-term interest rates from both horizontal and vertical perspectives.The study finds that countries that implement“interest-rate corridors” can be more effective than those countries which have not implemented “interest-rate corridors”.The volatility of short-term interest rates are also lower than before implementing in the same country.These demonstration results proved the effect of the policy on the regulation of short-term interest rates.Then the article studied how to establish Chinese “interest rate corridor” from the running conditions of “interest rate corridor”,the choice of benchmark interest rates,and the selection of upper and lower interest rates,etc.Finally,we puts forward some policy suggestions on constructing Chinese "interest rate corridor" control model.