On the Correlation between Economic Growth and Real Interest

PENG Zhi-yuan

Volume 18 Issue 3

Jul. 2021

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Article Navigation > Journal of University of Science and Technology Beijing ( Social Sciences Edition) > 2002 > 18(3): 6-10

PENG Zhi-yuan. On the Correlation between Economic Growth and Real Interest[J]. Journal of University of Science and Technology Beijing ( Social Sciences Edition), 2002, 18(3): 6-10.

Citation:

PENG Zhi-yuan. On the Correlation between Economic Growth and Real Interest[J]. Journal of University of Science and Technology Beijing ( Social Sciences Edition), 2002, 18(3): 6-10.

PENG Zhi-yuan. On the Correlation between Economic Growth and Real Interest[J]. Journal of University of Science and Technology Beijing ( Social Sciences Edition), 2002, 18(3): 6-10.

Citation:

PENG Zhi-yuan. On the Correlation between Economic Growth and Real Interest[J]. Journal of University of Science and Technology Beijing ( Social Sciences Edition), 2002, 18(3): 6-10.

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On the Correlation between Economic Growth and Real Interest

PENG Zhi-yuan

School of Economics Sichuan University, Chengdu 610064, China

Received Date: 2001-12-21
Available Online: 2021-07-09

Abstract

Abstract

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.
- economic growth rate,
- real interest rate,
- Solow-Swan Model

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