An demonstrative analysis of the economic life influences by interest rate marketization in our country

The interest rate is a stable factor in the traditional economic life in China, for it is not regulated by markets, thereby having a unnoticeable impact on economy. With the perfection of market economy, China has come to implement the stable monetary policy step by step, and the rates of loan and interest have been adjusted several times with interest rates as an operation tool. Its function has been evident too. Therefore, the People's Bank of China has put forward the overall scheme of the market-oriented reform of interest rate. With the demand of recognizing the function rules of interest rate in the new period, a demonstrative analysis should be undertaken of the function rules of interest rates since the reform of China. First of all, the relevant relation needs to be discovered between the financial processes and true interest rates of the society. Secondly, the change needs to be revealed on function of interest rates on economic indicators, such as prices, M2, loan, etc. in the period of China's economic transformation. Finally, the direct and indirect influences of interest rates need to be considered so as to undertake an influence analysis of the economic quantity.