Interest Rate Corridor System’s Development in China—Compared with International Cases

Abstract

The purpose of this paper is to estimate the progress and restraint of Chinese interest corridor system. This paper firstly observed other central banks how put interest corridor theory in practice. Then the author compared the Chinese interest corridor with other successful cases. Through that, this article comes to a conclusion that Chinese central bank have to perfect its finance market and to cultivate its benchmark rate. The innovation of this article is to bring the examination system of commercial banks into policy advice.