Position:Community news

Interest duty cannot be used when method of macroscopical adjusting control

From;    Author:Stand originally

If pass finance policy to replace monetary policy at present, so, possible Central Bank the effectiveness of monetary policy will get henceforth negative effect. And, because taxation policy assumed the job of the macroscopical adjusting control that it ought not to assume, so, possible additional the pay that raises it, the result that affects public investment and social income repartition

The discussion that whether abolishs about interest duty recently, basically involve the issue of the following respects: It is the force of duty negative pressure that the view cancels interest duty to fall in order to reduce consumer in inflationary environment, improve consumer place to assume thereby " negative interest rate " state; 2 it is the inflation that breaks through place of Central Bank the beginning of the year to make continuously when inflationary rate when dominating an end, impose interest policy through cancelling interest duty to come to those who replace the Central Bank; 3 it is to abolish accrual tax, whether can bring to the stock market new round benefit sky is pounded.

In the meantime, in the discussion process that accompanies this interest duty to cancel, the social welfare effect to interest duty made many economist be analysed further again, they think to abolish interest duty is helpful for difference of contractible society the rich and the poor.

The author does not object abolishing accrual tax, but, the author more and more feel the market appeared to the action of interest duty exorbitant evaluation. Accordingly, here wants to talk about the view of a few pairs of this problems, consult for everybody.

Primary purpose is not stimulating interest duty consumption

1999, although Chinese economy is affected by crisis of southeast Asia banking and as a result of,appear inside the possibility that need to be not worth and brings about economy to glide, need has a few to promote inside needed policy shift. Tell from this meaning, guide interest duty appeared to reduce the deposit income of common people directly, be helpful for increasing civilian consumption.

But, here, a term that I think to use economics -- " replace effect " will describe this kind of point of view, namely this one side that reflected deposit to be replaced by consumptive place, and oversight another feature of interest duty -- " income effect " , namely deposit reduces what can cause future to consume, customer did not come to make insusceptible, can reduce present expenditure conciously, raise deposit, in order to make sure future has the demand that enough income will come to to satisfy expenditure to go up. So, the join forces of these two effect judges interest duty very hard guide the growth that whether can promote consumption. In fact, we also did not see such single result in actual life appears.

Even if is such, because do not have the action of such stimulative spending, with respect to need abolish such system? I think of interest duty guiding basically is not to stem from the need that wants inside stimulation, the income source that stabilizes to enhance a government however in order to coordinate vigorous at that time finance policy. Well-known, in a few years after crisis of southeast Asia banking erupts, china's vigorous finance policy is maintaining growth of Chinese high-speed economy, this is in at that time also be unique on the arena of world economy.
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