The Development of Interest Rates Decision Theory and the Improvement of Interest Rates Liberalization

Before the 1930s,Western scholars have analyzed the factors deciding and impacting interest rates which were the real economy,monetary and subjective psychological factors and so on,but they focused on the real economy.Since the 1930s,Western scholars have also proposed some views that deciding interest rates including liquidity preference,loanable funds,supply and demand of bonds and models related to interest rates decision theory which were IS-LM model and the macro-financial model.It should sum up the western interest rates decision.It should accord to the need of mechanism that deciding and forming the interest rates and the socialist market economic development to promote the reform of interest rates liberalization.Hence,it needed a more stable macroeconomic environment,and deepened economic reform.