search query: @author Hao, Yunhong / total: 3
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| Author: | Feng, Zibiao Hao, Yunhong |
| Title: | Rational thinking on central Bank's continuous decrease in the interest rate (original in Chinese) |
| Journal: | Economics Information (c)
1999 : 12, p.9-12 |
| Index terms: | INTEREST RATES CENTRAL BANKS CHINA |
| Language: | chn |
| Abstract: | In fact there is no positive inner link between interest rate reduction and demand expansion. To readjust income distribution relations is no necessarily to diminish the interest rate. It is also a wrong idea to regard the continuous rate reduction as a means of "drive the tiger out of the cage" (force the residents to draw their money from the bank so as to expand consumption). The low price index, fast increase of resident wages and bank savings are also not enough to explain it. At present, to decrease interest rate does not necessarily stimulate demand. Probably it will further twist the relations between finance, price and economy, cut off the linkage between financial, monetary and industrial mechanism, aggravate the bank's internal contradictions and increase financial risks. |
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