Analysis on Financial Intervention by Rural Basic Level Governments

The financial intervention by rural basic level governments microscopically and macroscopically creates the low collocation efficiency of financial resource and irrational financial structure in rural area,and retards the progress of financial reform in the countryside.By interpreting the theoretical origin of the government financial intervention,this article analyzes the financial intervention behavior from the view of debit substitution and intervention in both sides of financial business,explains the deep level cause of these behaviors,and finds out the welfare loss caused by inappropriate intervention.