Also, consumers’ time preferences are hard to estimate, and, moreover, whose time preference we should estimate still remains an unresolved question. With the difficulties just mentioned in mind, central bankers have long made careful policy decisions using some kinds of estimates of the natural rate of interest.
Linking commodity market with factors of production markets and bridging production, distribution, and consumption, finance plays an essential role in resource allocation. With the deepening of China’s economic reform, financial industry became more and more market oriented, and the enhanced role and position of financial industry enable it to contribute more to sustained economic development and global economic adjustment.