Analysis of Policy Trend of International Interest Rate in the New Century
LI Tiande LIU Aimin (School of Economics, Sichuan University, Sichuan Chengdu, China,610064)
In this paper we consider that when the marginal utility of money is positive and the market weakness exists, only by carrying out a fiscal and monetary expansible policy can the income be raised and the rate of unemployment come down. But if the polocy failures occur, the economic will fluctuate, which will cause unnecessary damage. On one hand, in some advanced countries, especially in the U.S.A.today,with the development of financial liberty, adjustment of economic structure and technology innovation, the persistent stagnation has turned to be a full-equilibrium. There, the elasticity of interest rates and the selfadjustment of market have increased and the interest rate level remains quite steady.So the policy is more tempered and it needs to be adjusted slightly. On the other hand,the developing countries, including China, should adopt a policy, which prefers the liberalizing of interest rates and technology innovation, and use the macroeconomic policy more effectively. From that we may conclude that in the future the level of the globe interest rates will become coincident.
【CateGory Index】： F82