On The Status Of The Interest Rate Market And The Impact On China's Economy

The interest rate liberalization is not only nowadays the development trend of theglobalization of world, but also an irresistible general trend and objective requests ofChinese financial system reform. It will produce the huge influence to effects ofmonetary policy, financial institutions, business enterprise and individuals in China. Italso performs a very important function to Chinese orientation development of globaleconomy, the perfection of local micro economy foundation, the excellentinstallation of financial resources, and the adjustment of national economy structures.Therefore, the inquisition and research in Chinese interest rate liberalization have veryimportant realistic meaning.This thesis experiences the foundation of the success and failure that the interestrate liberalization has been brought about internationally, then mainly discusses twoproblems. One is the present condition that Chinese interest rate liberalization hasfaced up to, including motivation of reform and internal environment condition, theanalysis of this aspect contributes to clarify that the interest rate liberalization is just acomplicated system engineering and the success will not be easily achieved. Two isthe influence that Chinese interest rate liberalization turns to the Chinese economy,including the affection which the reform exerts all parts of Chinese economy and thelatent risk which the reform will be confronted, the study of this aspect contributes toannounce the realistic meaning of Chinese interest rate liberalization.Through the analysis of both sides, this thesis concludes that the foundationcondition of the start of interest rate liberalization needs the existence and maturity ofthe related system environment and principles, especially the gradual strategy ofChinese economy reform decides that the Chinese interest rate liberalization shouldbe advanced gradually. The reform should mainly begin from the stability of themacro economy and the deepening of the market economy reform, wanting at thesame time at speed to take correspond measures on financial supervision, financialmarkets, state-owned commercial banks and state-owned business enterprise, etc.