Research On Optimal Width Of Interest Rate Corridor

In today's economic and financial society,interest rates have always been the most concerned issue in people's lending.If the interest rate is too high or too low,it will affect the stability of economic life.The Central Bank has acted to regulate interest rates among banks,control the stability of the interest rate market,and introduced an interest rate corridor mechanism.The interest rate corridor is a means by which the Central Bank regulates overnight market lending rates,and sets upper and lower limits,forcing the overnight borrowing of market interest rates to approach the target interest rate.It is precisely because the interest rate corridor plays a key role in controlling the interest rate on overnight borrowing markets.Therefore,on the study of the interest rate corridor,but the difference in the width of interest rate corridors,it also has certain differences in the regulation of interest rates,and further expands the corridor width and interest rate.Study of relations.The paper analyzes the relationship between interest rate corridor width and interest rate.The main research work is as follows:1.Read the relevant research literature and review the literature;2.Obtain relevant data from the United States,China,and Canada from the WIND client and the Federal Reserve website,and use R software to draw a rough picture of the interest rate corridors of the three countries.Only three countries are selected here.Of course,all countries in the world that have existing interest rate corridor mechanisms will be analyzed.The amount of such data will be huge and there will be many similar national data.Although the research will be more accurate,It will also be very troublesome.At the end of the article,we also mentioned that if we can enrich the data of all countries in the world,the accuracy of such a model is very good.These three countries have a certain representation in the world.The width of China's corridors has always been the widest in the countries that already have such a mechanism;Canada is the world's most recognized country in which the interest rate corridor mechanism operates best;the United States is the center of the world economy,and its Once the economy fluctuates,it will affect the whole world,so the data of these three countries are selected;3.Through the self-appraisal scoring system,score the deviation between the policy interest rate and the target interest rate,obtain the first-order difference of the policy interest rate,and then sum the weighted total scores to obtain the total score and obtain the interest rate corridor width.The larger and smaller,the worse the regulation of interest rates,and verify that the interest rate corridor has a smoothing effect on interest rate fluctuations;4.Increase the economic indicators GDP year-on-year and the CPI ring-to-be,because these two indicators are particularly important in economic life,and are useful for classification.Therefore,after adding these two indicators,K-nearest neighbor algorithm classification is performed on the selected three national data.Using the selected indicators and interest rate fluctuations as feature attributes,and the corridor width as the classification attribute,the recommended corridor width after a given correlation index can be obtained.If the interest rate fluctuation of the recommended corridor width is smaller than the other interest rate fluctuations,it is the most Excellent corridor width;otherwise,the larger the width of the corridor,the greater the fluctuation in interest rates.Know that the corridor width should search in a smaller width than the recommended width.Through the empirical analysis of the data of the three countries,the panel results of the optimal corridor width are obtained,and it is convenient to obtain the optimal width directly after giving the relevant indexes,and try to improve the classification algorithm.The effect is not ideal.