StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Real Interest Rates Movements in China - Coursework Example

Cite this document
Summary
The purpose of the paper “Real Interest Rates Movements in China” is to evaluate the impact of real interest rates on the economic growth of China. The reason for the selection of China is that the china’s economy is considered as highly competitive internationally…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92.2% of users find it useful
Real Interest Rates Movements in China
Read Text Preview

Extract of sample "Real Interest Rates Movements in China"

Download file to see previous pages

It is commonly perceived that the increase in real interest rates may negatively impact the growth of the economy. The reason may be that the higher real interest rates may effectively increases the cost of funds (Dotsey , 1998). The increase in real interest rates, however, has both positive and negative impacts on the economy because for some countries it may attract investors because of increase in investment returns, whereas, for other countries it may increase the cost of funds borrowed. The purpose of the paper is to evaluate the impact of real interest rates on the economic growth of China.

The reason for the selection of China is that the china’s economy is considered as highly competitive internationally. Moreover, despite of being a developing nation, China’s impact on international financial market in terms of trade is significant. In addition to this, study of the impact of real interest rate instead of nominal interest rate on economic growth of China, may give more accurate results of the relationship because real interest rate is a pure single factor. The aim of the research provides a road map of study and helps the researcher to list down the goals he wants to achieve from the result (Munhall & Chenail, 2008).

The goal of research is “To Analyze the contribution of real interest rates towards the economic growth of the China”. The goal of the research clearly indicates that the paper is based on the evaluation of the significance of relationship between the two factors i.e. real interest rates and the economic growth of China. The objectives of the research are determined in a way that break downs the aim of the research to make the analysis more objective and focused and to answer the questions with the help of scientific procedure (Kothari, 2004, p. 2).  

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Real Interest Rates Movements in China Coursework - 1”, n.d.)
Real Interest Rates Movements in China Coursework - 1. Retrieved from https://studentshare.org/finance-accounting/1686592-impacts-of-real-interest-rates-movements-on-economic-growth-of-china
(Real Interest Rates Movements in China Coursework - 1)
Real Interest Rates Movements in China Coursework - 1. https://studentshare.org/finance-accounting/1686592-impacts-of-real-interest-rates-movements-on-economic-growth-of-china.
“Real Interest Rates Movements in China Coursework - 1”, n.d. https://studentshare.org/finance-accounting/1686592-impacts-of-real-interest-rates-movements-on-economic-growth-of-china.
  • Cited: 0 times

CHECK THESE SAMPLES OF Real Interest Rates Movements in China

ROLE OF GOVERNMENT

Among these, china has been a significant illustration.... china operates with minimum government intervention for better economic stability.... For example, at the time of World War 2, china had to witness a steep fall in its employment rate, which had resulted in the downward shift of the wage rate and the AS curve.... Exhibit 1: Recessionary Gap AS movements as per the new classical theory (Jain, Jain, Ohri, Majhi and Ohri 193) Treatment of recessionary gap in Keynesian approach: In contrast to the new classical theory, the Keynesian theory asserts that recessionary gap is the shift in Aggregate Demand (AD) due to low spending in an economy....
4 Pages (1000 words) Assignment

International Investment in China

This essay primarily encompasses the direct investment concerns in the international business spectrum and also presents the case of Shell plc as an example of UK's direct investment in china.... The recent rapid economic boom in china and open market policy has projected the country's image in the world as an attractive market for international investment (Sun and Chai, 1998).... Huaning and Colin (2004) refer to the United Kingdom as the pre-eminent investor in china during the recent years among all the European Union countries....
10 Pages (2500 words) Essay

The Effect of Monetary Policies on Financial Institutions

3 How do these policy-induced changes in real interest rates …………………….... 5 Effect of interest rate to long term investment …………………………………....
9 Pages (2250 words) Essay

What Is Quantitative Easing

The quantitative easing had several effects on the US interest rates and money market (Costa, 2014).... This is the opposite of the raditional operation of open market policy, whereby the federal government buys and sells securities to change money supply to keep federal fund rates at a specified target value (Carbaugh, 2013, p....
7 Pages (1750 words) Essay

Key Components of Interest Rate Risk and Approaches of Risk Management for Chinese Banks

In case of fixed interest rate, such mismatches originate at the time of maturity of the financial instrument and in case of variable interest rates; the non-alignments arise at the time of revaluation of an asset, liabilities as well as off-balance sheet instruments.... Many times, the correlation between the value of maturities and revaluation of asset- liabilities and their calculative values becomes highly negative because of the adaptation of interest rates....
10 Pages (2500 words) Essay

China State Owned Enterprises

Jintao as president of China, the country began new political reforms and policies to change the way business was performed in china.... The purpose of this paper is to analyze the state-owned enterprises in china to find strategies and solutions to solve the problems these enterprises are encountering.... This paper "china State Owned Enterprises" discusses the ownership system of the Chinese companies.... In the fiscal year 2006, the global assets of china's top 423 state-owned enterprises increased by 14....
8 Pages (2000 words) Case Study

Opportunities of the Commodity Markets

The prices of commodities have hiked over the past many years due to increased consumption in the emerging economies such as Brazil, china, and India.... The paper provides a detailed description of the commodity markets.... There the purchase and sale of raw products occur: they deal with soft (oil, rubber, and gold) and hard (agricultural products and livestock) commodity....
11 Pages (2750 words) Research Paper

International Financial Management

The essay "International Financial Management" compares the exchange rates of American and Australian Dollars despite rising foreign debt and high current account deficits.... This essay seeks to find out the relationship of the Australian dollar with the US dollar and possible causes of appreciation and decline in the Australian dollar....
7 Pages (1750 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us