Research On My Country's Short-term Interest Rate Corridor Model And Its Operational Effects

At present,China's monetary policy framework is in the midst of a shift from quantitative to price,to strengthen the central bank for the amount of fluctuation in the level of market interest rate changes to guide and control is the important task to realize our country monetary policy framework of transformation,however,the traditional of open market operations in terms of interest rates,exchange rate volatility of the market in China are still at a higher level compared with other countries.Since 2013,our country for reference and build in the international practice proved effective new pattern to regulating the market interest rate,interest rate corridor,in order to i1prove the ability of central bank regulation of market interest rate system,has formed the three period of short-term interest rate corridor,the overnight interest rate corridor,corridor of a interest rate corridor and seven days.This paper focuses on whether China's short-term interest rate corridor model plays a theoretical role in regulating the interest rate system and how to improve it.Based on this purpose,this paper mainly adopts the research method of combining theory and demonstration.Through in-depth exploration and elaboration of the basic connotation,transmission process and action mechanism of the interest rate corridor model,the operation effect of the interest rate corridor model 1s empirically tested by two characteristics of its role.Second,the adjustment of corridor width can affect the fluctuation degree of market interest rate.Empirically,on the basis of roughly suumarizing the construction paths of three interest rate corridors with different maturities in China and drawing corresponding operation diagrams,this paper selects the ovenlight and seven-day interest rate corridors with longer construction time and higher degree of perfection as test objects to verify whether the operation of short-term interest rate corridors in China is effective or not.In the empirical method,the arma-garch model is used to model the level and volatility of repo rates between night and seven days.In addition,considering the coexistence of two interest rate regulation modes in China,this paper innovatively introduces the dummy variable D,which represents the open market operation behavior of the central bank,and introduces the open market operation index as the control variable into the model.The empirical results show that SLF,the upper limit of the overnight and seven-day interest rate corridor in China,can effectively guide the narket interest rate level change,and the fluctuation of R001 increases with the expansion of the width of the overnight interest rate corridor.and the operation effect of the overnight interest rate corridor is in line with theoretical expectations.Comparatively,China's central bank conducts more frequent open market operations.In China's seven-day interest rate corridor model,the fluctuation degree of the market benchmark interest rate R007 does not increase significantly with the expansion of the seven-day interest rate corridor.Therefore,at present,the combination of the two models 1n China enhances the effect of the central bank's regulation of market interest rates.However,excessive reliance on open market operations for market interest rate regulation not only increases the operating cost of monetary policy,but also increases the difficulty of market players' policy expectations.Therefore,this paper proposes that China should continue to improve the interest rate corridor mechanism and realize the transformation of the interest rate regulation mode from "open market operation" to "open market operation" and then to "interest rate corridor".