On the Correlation between Economic Growth and Real Interest

Based on the Neo-classic growth model of Solow-Swan Model, we can draw a conclusion; there is a positive correlation between economic growth and real interest. But neither high real interest rate causes high economic growth nor high economic growth causes high real interest rate; the property right reform of the state-owned commercial banks and the interest rate determined by the market mechanism are the necessary conditions for a sustained growth in the national economy. At last we predict the trend of economic growth and real interest rate in future.