“Unlocking Loan Interest Rate”:Realistic Choice,Theoretic Model and Economic Effect

Unlocking loan interest rate is one of the most important issues of financial liberalization.In this article,we consider that the reform of unlocking loan interest rate and restraining deposit interest rate has relevant realistic background.Based on Stiglitzs’ theory of financial restraint,we establish a Model of “unlocking loan interest rate and restraining deposit interest rate” and analyze the coming economic effect after the reform.We draw a conclusion that although the reform has its localization,which is the only way to financial reform in China.