Abstract:
According to change of nominal interest rate and its effects on increase of economy and investment, we can differentiate “mobile trap in a narrow sense” from “that in a broad sense”, which haven't occurred in our country since the outlay curtailment in 1997. Thus in terms of the structure of interest rate periods in micro financial market, a macro analysis of the long-term economic fluctuation in our country shows that the relative variables following the transition from rise to fall of economic operation periods distribute respectively in rate of inflation>nominal interest rate>actual interest rate and rate of inflation>nominal interest rate>actual interest rate, the reason of which lies in the adjustment of nominal interest rate falling behind the wave of inflation rate both in time and in scale. Financing policies like repeatedly reducing interest rate play an active role in investment, production and employment, let alone their extended functions, including increase of industrial profit, decrease of the cost of state debts, change of the anticipation of the economic subject, reduction of the pressure upon interest rate multiplication and increase of importation. The claim “the monetary policy makes no effect in time of economic depression” contributed by the macro-economics textbook is “a total dogmastic view of macro-economics” resulting from a misunderstanding of Cairns and should be adondaned.
