Zhang Jingjing, Wu Zhouheng
School of Economics and Trade, Guangdong University of Foreign Studies, Guangdong 510006, China
This paper builds, calibrates and simulates Stockman's (1981) cash-first dynamic stochastic general equilibrium model (DSGE). After explaining, analysing and predicting the full liberalisation of interest rates, the rise in nominal deposit interest rates will generate China's macroeconomic and macroeconomic structure. Impact. The steady-state equation, impulse response and numerical simulation analysis of the model show that the rise of nominal deposit interest rate will effectively curb the growth of investment and capital stock by increasing the real interest rate of deposits and the marginal cost of corporate capital, and increase the proportion of consumption in GDP, thus contributing to the improvement of economic structure. And promote economic sustainable development; in the face of external shocks, rising interest rates can reduce macroeconomic fluctuations; the impact of monetary policy shocks on the real economy is enhanced, monetary policy interest rate transmission channels are more smooth; interest rate rise will curb investment and macro The fear of a negative impact on the economy has not been supported by the model. This paper believes that in the future, we should unswervingly and steadily push forward the interest rate marketisation reform.
Interest Rate Liberalisation; Monetary Policy; Economic Structure Adjustment
Zhang Jingjing, Wu Zhouheng. The Impact of Interest Rate Liberalisation on the Effectiveness of Monetary Policy and Economic Structure Adjustment. The Frontiers of Society, Science and Technology (2019) Vol. 1 Issue 5: 80-90. https://doi.org/10.25236/FSST.19010515.
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