This paper uses both VAR and VECM to analyze the impacts of deposit rate liberalization in U.S., showing that it would increase mortgage rate and decrease GDP growth rate for some time, but in the long run, there will be a decline in mortgage rate and real house price, and an increasing GDP growth rate. These conclusions and the similarities of reform background between China and U.S. have suggested that it is appropriate for China to follow a similar phased manner, together with the improvement of its supplementary system, such as deposit insurance and strengthening the market and banking supervision.
Junwei Chen. "Implications of Deposit Rate Deregulation of U.S. to China." Proceedings of the New York State Economics Association. vol. 7, October 2014, p. 13-22
BibTeX entry download