The Impact Of Chinese Real Interest Rate On The Real Economy

The development of the real economy is the cornerstone of a country's economic development.Improving the financing difficulties and financing expensive problem of enterprises is the first priority of the development of the real economy.Zhou Xiaochuan has repeatedly said that the central bank's interest rate adjustment is mainly based on changes in the price level of our country.Several interest rate cuts is in order to reduce the financing costs of enterprises to support the development of the real economy.From September 2008 to the end of 2016,the central bank has adjusted the benchmark deposit and loan interest rates for the 20 time,the 25 time to adjust the statutory deposit reserve ratio.The real economy and the banking business has a close relationship.With China's market-oriented interest rate reform deeply,central bank has weaken the control force to the commercial bank loan pricing.The problem about if the interest rate adjustment can effectively reduce the financing costs of enterprises still need in-depth analysis and research.The real interest rate has the direct impact on the economy but the problem about the relationship between the real interest(?)ate and the real economy,especially the relationship with the economic growth,the theory has different views.Keynes's and many mainstream school believe that there is a reverse change between the two sides and continued interest rate cut is conducive to economic growth.However Ronald.J.Mckinnon and Edward.S.Shaw put forward the theory of financial deepening that the development of interest rate marketization is not complete and the theory of Keynes are not fully applicable.Firstly,we use comparative analysis and chart analysis to research the benchmark interest rate?a one-year loan real interest rate and loan interest rate of commercial banks.From the angle of enterprise financing cost,we research the effect of interest rate policy on the real economy,and analyzes the the relationship between all the three rates and investment,consumption,savings rates.Then in the part of empirical research we use the VAR model.It is found that in the short term the real interest rate and real economic growth have a negative relationship.The real interest has a direct impact on the actual financing costs of the enterprise.Raising the real interest rate will increase the actual financing costs of the enterprise.There is a positive correlation between the real interest rate and the growth of the real economy in the medium and long term,but it is not a direct cause and effect relationship.In the impulse response function analysis the positive impact of long-term real interest rates will promote the growth of the real economy which is the conversion rate through loans increased to achieve.That is attributed to China's financial liberalization and the deepening reform of interest rate marketization.Now many of the existing literature use the central bank benchmark interest rate as the nominal interest rate to research the policy of the interest rate how to affect the corporate financing and the real economy.The innovation of this paper is to use real credit market interest rates on bank loans as the nominal interest rate and all the data is from the "general weighted average lending rate of non financial enterprises and in his department".Based on the qualitative analysis and Empirical Analysis about the effect of interest rate policy on the cost of enterprises financing and the real economy we analyzes the existing enterprises in China the financing difficulties of financing expensive phenomenon from the demand for loanable funds is greater than the supply,the adjustment of interest rate policy is not obvious,the producer price index continued to decline,the high cost of financing intermediary and rigid payment five aspects...