Doubting On The Theory of Interest Rate Liberalization

Combing basic views of western economics and marxism's theory about Interest rate liberalization,this paper believes that the current theoretical basis of the interest rate liberalization conflicts with the principle of contemporary western economics,also does not conform to the principle of monetary action of Marxism Economics,and runs counter to the principle of the state's role in the socialist market economy.Interest rate liberalization or(complete)marketization leads to decreased effectiveness of resource allocation,is not conducive to the rationalization of income distribution and redistribution;Market-oriented higher interest rate will curb demand and thus curb economic growth,the fluctuation of interest rate will disturb economic operation;Market-oriented interest rate will increase and exacerbate credit operational risk,and the financial crisis.The(complete)market reform of interest rate is not a question of the right time or not and how to operate.Instead,the determination of interest rate should not completely release.Scientific interest rate policy should combine controlled market interest rate with the planned/regulated interest rate under the constraints of the market.