Microfinance made some achievements in China's poverty alleviation system pilot, but there is the issue whether it should have a high interest rate or low interest rate. Will the higher interest rate be surely conducive to the sus-tainable development of microfinance? Institutions and domestic and foreign scholars have different opinions. This paper discusses the rationality and necessity of high interest rate from more rational economic perspective. The study is based on the transaction cost theory, the relationship between supply and demand a...
