Research on Interest Rate Liberalization in Taiwan

Abstract

International Background and Internal Pressure of Interest Rate Liberalization Interest rate is the price of financing, and the level and rise of interest rate directly affect the supply and demand of funds. For a long time, most countries in the world have implemented a system of regulated interest rates. In the late 1960s, due to internal economic contradictions and strong external pressure, Western countries began to feel that the artificial interest rate control was difficult to adapt to the changes in the objective situation, so they gradually lifted the interest rate control, allowing the interest rate to be determined by market forces, and switched to using the money supply as The most important indicator of monetary policy. After entering the 1970s, Western countries have