Analysis On The Effectiveness Of Interest Rate Corridor In The Regulation Of Short-term Market Interest Rate

With the continuous development of information technology,the emergence of financial innovation and the emergence of new things such as Internet finance,the implementation of traditional quantitative monetary policy has been weakened.The monetary policy framework of the central banks in the world has gradually changed from quantitative to price type."Interest rate corridor" is the new model of monetary policy regulation and control,which appears in the process of this transformation.Because of its high efficiency and the advantages of transparency have been favored by the United States,Canada,Britain and other major developed countries.From the practice of various countries,the implementation of the control model of interest rate corridor is helpful to reduce interest rate fluctuation in order to maintain the short-term market interest.Interest rate corridor can reduce the frequency of the open market operation and the cost of regulation and control of the central bank,which have achieved a good control effect.Based on the reality of our country,under the background of deepening the reform of interest rate marketization in an all-round way and the constant innovation and development of finance,it is difficult for the quantitative monetary policy control mode to realize the goal of monetary policy control in our country.In order to further deepen the reform of interest rate marketization,promote the transformation of monetary policy framework,and improve the transmission mechanism of interest rate,it is necessary to study whether the interest rate corridor can regulate short-term market interest rate.Based on the relevant literature of domestic and foreign scholars,this paper is divided into four parts to explain and discuss interest rate corridor.The first part is the theoretical study of the interest rate corridor.Firstly,it introduces the related concepts of monetary policy,then explains the basic meaning of the interest rate corridor,and compares the difference between the interest rate corridor and the interest rate control.In addition,the operating conditions,factors setting and operation mechanism of the interest rate corridor are also introduced in detail.The second part introduces the interest rate corridor of the Central Bank of Canada,the European Central Bank and the Federal Reserve.Paper introducrs the characteristics of their interest rate corridor model,as well as the current status of the interest rate corridor mechanism in our country.In addition,the international experience on the interest rate corridor model are summarized.The third part is the empirical test.The paper uses the GARCH model and combines the horizontal comparison and the vertical comparative analysis to verify the effectiveness of the interest rate corridor on the regulation of the short-term market interest rate.The conclusion is obtained through the empirical research of horizontal comparative analysis and vertical comparative analysis:the interest rate corridor is effective in regulating the short-term market interest rate.The fourth part is a summary of the paper.From the current stage of our country to build the mechanism of interest rate corridor realistic basis and defect conditions,combined with the international experience of interest rate corridor construction,the deposit reserve system,the various elements of the interest rate corridor,open market operation,market-oriented regulation,central bank status and electronic clearing system can improve the mechanism of interest rate corridor in China.