Participants’ Behavior In The Interest Rate Corridor

China has been exploring the establishment of the interest rate corridor in recent years.In February this year,for the first time,the exploration establishment was changed to the preliminary establishment in the report from Central Bank of China.In other words,China has just achieved the initial establishment of the interest rate corridor.That means there will still be a lot to be done.Therefore,relevant research will continue to be a hot topic in the academic circle and will be more valued.The interest rate corridor is mainly regulated by the High-Value Payment System,which plays a fundamental role in the implementation of monetary policy.After collecting and sorting out the literature of previous scholars,I found that most domestic researches on interest rate corridors were about model introduction,the comparison with open market operations,and practice of foreign corridor mechanisms,etc.And foreign studies mostly focused on the setting of corridor upper and lower limits,the empirical discussion of the corridor mechanism,and different types of corridor systems.However,there was no specific research on the behavior of participants in the interest rate corridor at home and abroad.And there was little research on the correlation between the interest rate corridor and the High-Value Payment Systems.Based on this,this paper mainly deeply explored the effectiveness of the interest rate corridor in the perspective of big pay system,from the perspective of the participants behavior,adopting the method of complex network and simulation,comparing the changes of liquidity utilization efficiency and payment settlement efficiency of individuals and system,in order to provide theoretical support for the perfection of China’s interest rate corridor.Since the interest rate corridor involved the Central Bank’s daily deposits and loans,as well as interbank lending,the research framework of this paper was firstly to establish Inter-bank Lending Model and Daytime Credit Model respectively.Then based on these two models and the Woodford theoretical model,Interest Rate Corridor Model was formed after behaviors coexistence was constructed.A corresponding BA scale-free network and a global coupling network were generated according to the 58 participants.A High-Value Payment System was established by MATLAB tools,and then the payment and settlement behaviors of the system participants under different models were simulated and studied.The main results obtained were:Firstly,regardless of network structure,the Interest Rate Corridor Model and the Inter-bank Lending Model were significantly able to improve the payment settlement efficiency of the participants and the system,and to promote the liquidity cycle.What’s more,the promoting effect of the Interest Rate Corridor Model on the liquidity cycle was stronger than that of the market with only interbank lending.Secondly,whether it was the Interest Rate Corridor Model or the Inter-bank Lending Model,the variation trend of the daily market interest rate obtained was generally similar to the intraday trend of the Shibor and Treasury Yields.Thirdly,the fluctuation range of the market interest rate in the Interest Rate Corridor Model was smaller than the market interest rate of the Interbank Lending Model.It was shown that the interest rate corridor could stabilize the fluctuation of the market interest rate without affecting the payment and settlement combined with the first conclusion.Finally,if the Central Bank lowered the interest rate level of the corridor ceiling,it could not only reduce the interest rate of the interbank lending market,but also reduce the fluctuation of the interest rate.And to a certain extent,it could also promote the settlement and the liquidity turnover of the participants and the payment system.