International Comparison Of Interest Rate Corridor Regulation Mode And China's Choice

At present,China mainly adopts quantitative monetary policy tools to control interest rates,that is,China's central bank and commercial Banks and other financial institutions conduct bill trading,in order to achieve the goal of stable economic operation by changing the liquidity in the market.However,in recent years,with the development of financial innovation,the emergence of electronic payment tools and the basic completion of interest rate liberalization in China,the control accuracy and effect of traditional quantitative monetary policy tools represented by open market operations have declined.Since 1990,many western countries have shifted to the tool of price monetary policy.Among them,the interest rate corridor has a better effect on the regulation of market interest rate.Different countries have chosen different interest rate corridor models in combination with the international economic situation and their own actual conditions to reduce the impact of the failure of quantitative monetary policy tools.By contrast,the interest rate corridor mechanism can achieve the goal of adjusting the market interest rate through adjusting the upper and lower limits with lower costs and easier operation,which is in line with the development trend of China's monetary policy.This paper mainly studies from five parts.The first part focuses on several issues,including what the main research problem of this paper is,why it is studied,what the existing research is achieved,and what innovations the paper will make to this extent.The second part is the theory of interest rate corridor.It introduces what is interest rate corridor and its working principle.The third part is the practice of interest rate corridor,which introduces the background of implementing interest rate corridor in representative countries with symmetrical mode and asymmetric mode,the construction of interest rate corridor and the specific operation mode.The fourth part is empirical analysis.It is assumed that the central bank takes the stable interest rate as the target and USES the impulse response to compare the different operation modes of different interest rate corridors on short-term interest rate stabilization.The fifth part is the summary and Suggestions.Firstly,the advantages and disadvantages of the symmetric model and the asymmetric model,the background of their emergence,the conditions for their implementation and the specific operation mode of representative countries are analyzed.Based on the actual situation of China,this paper summarizes the experience,analyzes the current situation of interest corridor construction in China,and puts forward policy suggestions.This article mainly has carried on the two aspects of innovation:first,compared with the existing literature,this paper pay more attention to discuss the implementation of the interest rate corridor background and basic conditions,the existing literature more select data were discussed in the period of the representative national economic stability,this paper argues that the same kind of interest rate corridor pattern in different interest rate reduces the effect of different economic period,and puts forward policy Suggestions on policy reform in China,compared with the existing literature more practicability and feasibility.Second,in this paper,it is concluded that different models of interest rate corridors adopted by the same country at different stages of economic development will produce different effects.By building China's interest rate corridors through simulation,different options of operation modes of China's interest rate corridors are expounded in stages,which is of certain complementary effect to previous research literature.To sum up,it is timely and feasible to adopt the interest rate corridor regulation mechanism in the price monetary policy framework based on the international experience,the current situation of China and the guidance of national policies.By comparing the stabilizing effect of the main interest rate corridor mode on short-term interest rate internationally,it is concluded that the interest rate corridor operation mode is suitable for China.This paper compares the differences between the conditions in China at the present stage and the necessary conditions for implementing the interest rate corridor,puts forward the policy Suggestions for perfecting the interest rate corridor mechanism in China,and looks forward to the regulation mode of the interest rate corridor in China.