Abstract Abstract: Policy on interest rate is a common way in the Central Bank’ national macro-regulation. It is proved that the effect of policies on interest rate does not completely conform to the target of macro-regulation. What may cause positive and negative effects in policy making and practicing under different circumstances? The key factor lies in the limitation of interest rate policy itself. Only when the study of the limitation of interest rate policy is emphasized, can the policy on interest rate be more effective and offer better help to reach the target of the national macro-regulation of Central Bank.
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Received: 21 July 2007
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